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Alabama R&D Tax Credit (Innovate Alabama)

Alabama R&D Tax Credit (Innovate Alabama)

Supports Alabama small businesses with state tax credits for innovation investment and commercialization growth.

Between cyclesInnovate Alabama (Alabama Innovation Corporation)United StatesEligible in Alabama

The Alabama R&D Tax Credit — formally the Innovating Alabama Credit — is a donor-driven state tax incentive program administered by Innovate Alabama (the Alabama Innovation Corporation) under Ala. Code §41-10-840 et seq. (Act 2023-33, amended by Act 2024-441), with program operations running through a July 31, 2028 sunset. Unlike a direct R&D expense credit, the program channels private capital to…

Alabama state tax credit incentivizing private donors to fund approved Economic Development Organizations that in turn support early-stage tech accelerators and underrepresented innovative small companies in Alabama.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Annual
Next deadlineiThe next date applications are due. Rolling means you can apply any time.—
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Tax credit
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.—

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Last verified: 24 Jul 2026Source: innovatealabama.org