Tax abatements signal jobs and growth
Sep 12, 2013 | 2284 views |  0 comments | 86 86 recommendations | email to a friend | print
When businesses come before city councils and county commissions to ask for a tax abatement, it’s a pretty good sign. It means they’re wanted to significantly expand an existing operation in the area, or come in with an entirely new project.

We’ve seen one of each in Talladega County in the past couple of weeks.

The first, and larger request, was in Childersburg. The county’s Economic Development Authority director, Calvin Miller, told the council Alabama Green Industries was interested in a location at the city’s industrial park that, if built, could bring about 25 jobs to the area with a $2 million payroll, after a $49.5 million investment in the facility.

It sounds like the type of industry that would be a good fit for the area. The abatement would waive sales taxes on construction-related expenses, mortgage and recording fees and local property taxes for 10 years. Under state law, taxes earmarked for education are not waived.

The Talladega County Commission heard a request this week from the attorney for Midwest Express and Gulf Shores Assemblies, two Honda subsidiaries. Gulf Shores is already in operation in Lincoln with an operation that puts the tires on wheels for vehicles manufactured there. The request was for an abatement for $3.8 million in new equipment to enable employees to work on two sizes of rims and increase capacity by 50 percent.

Both requests contribute to the business-friendly atmosphere in the area, and both were approved.

We’re glad to see businesses choosing to locate and expand in our area, and we hope to see local economies benefit from their presence here.