Alabama offers several sales tax incentives to promote economic growth, including:

• Manufacturing Equipment Exemption: Exempts machinery and equipment used in manufacturing from sales tax.

• Enterprise Zone Credit: Provides tax credits and exemptions for businesses in designated economically distressed areas.

• Data Processing Centers: Offers sales tax abatements on equipment for qualifying data centers.

• Pollution Control Equipment Exemption: Exempts equipment designed for pollution control from sales tax.

• Drug Manufacturer's Exemption: Exempts machinery and materials used in pharmaceutical manufacturing.

• Agricultural Exemptions: Exempts seeds, fertilizers, and farming equipment from sales tax.

These incentives reduce operational costs for eligible businesses, encouraging investment and expansion in key industries.