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