The Solar Energy Program (SEP) program offers financial assistance as loans to eligible applicants to promote manufacturing, research and development, and generation of solar energy in the state. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under direction of the Commonwealth Financing Authority (CFA).
The program provides loans for solar projects, including generation, distribution, storage, manufacturing or assembly facilities for solar panels or equipment, and development or construction of facilities used for research and development of technology related to solar energy. The terms of the loan for
State of Alabama provides the option for local governments to provide exemptions or abatement for sales and use tax for qualifying renewable energy facilities in the State. The state has a general sales tax of 4%, however, the renewable energy facilities qualify for 1.5% rate provision that is set for manufacturing and farm machinery. In addition to State sales tax, the local governments may also impose an additional sales or use tax.
The exemption or abatement for both state and local sales/use tax are provided by the local granting authority. The local granting authority could be a city, county, or