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Alabama

A guide to help you understand the ins and outs of business in Alabama.

Overview

Alabama is located on the Gulf of Mexico, which shares state borders with Tennessee, Florida, Georgia and Mississippi. It is the 30th largest state with the 24th largest population (4.91 million people). Its capital is Montgomery, while its largest city is Birmingham. In 2019, Alabama’s Gross Domestic Product was $228,143,000,000.

Some of Alabama’s top industries are aerospace and aviation, agriculture, automotive, bioscience, chemicals, forestry products, and metal and advanced materials. Alabama’s aerospace industry has over 4,660 engineers employed, while its chemical industry exported over $2.3 billion in 2019. The state is also home to assembly plants for Mercedes, Honda, Hyundai, and Toyota, which helped account for the almost 1 million vehicles produced in Alabama in 2019.

In 2019, Alabama imported $853,644 from Qatar: Aluminum and articles thereof, Nuclear reactors, boilers, and machinery. In 2019, Alabama exported $32,803,921 to Qatar with its top exports being: Vehicles (except railways and tramways) and parts, Nuclear reactors, boilers, machinery, Electrical machinery, and sound/TV equipment.

Alabama has a flat corporate income tax rate of 6.5%, which was implemented in 2001. Alabama has five free trade zones across the state (Mobile, Huntsville, Panama City and two in Birmingham), as well as 31 incentive programs, such as the Rail Credit and the New Markets Tax Credit.

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