Data Processing Center Tax Abatement
Alabama
Eligibility?
Explicitly Eligible
Overview
Alabama
Incentive Type
Data Processing Center Tax Abatement
Benefit Type
Tax Incentive
Effective Date
June 1, 2026 at 8:00:00 AM
Official Identifier
July 31, 2032 at 8:00:00 AM
State
Incentive Details
Incentive Description
Provides qualifying data processing center projects with abatements of eligible state and local noneducational property taxes, sales and use taxes, and mortgage recording taxes. Amendments enacted in 2026 revised eligibility requirements and reduced the maximum abatement period for certain future awards while extending the program authorization.
Key Provisions
• Abatements approved before January 1, 2027 may receive up to 30 years of benefits.
• Abatements approved on or after January 1, 2027 are limited to 20 years.
• Eligible investments include roads, bridges, broadband, water and wastewater infrastructure, public facilities, and public education investments.
• Qualifying projects remain subject to statutory approval and compliance requirements.
Benefit Type
Up to 30 years for abatements approved before January 1, 2027; up to 20 years for abatements approved on or after January 1, 2027.