Tax Credit Project Application (R2

Tax Credit Project Application
Note: Organizations that have not previously been awarded EDO Designation may not apply for a Project Application. New applicants must apply during the New EDO Designation round. Please see the website for details.

Existing EDOs: If your previous EDO Designation letter has expired, a new letter will be issued provided your organization is in good standing and continues to meet eligibility requirements.
2026 Tax Credit
Applications must be submitted by the designated Economic Development Organization (EDO), not by the organization proposing the individual project.
Section 1. Economic Development Organization (EDO) Information
Legal Name of EDO
Street Address
City
State
Zip
County
EDO Website URL
EIN#
Type of EDO
Name of Submitter Contact:
This is the person submitted the form.
Submitter's Title
This is the person submitted the form.
Submitter's Phone Number
Format: (000) 000-0000.
Submitter's E-mail
Is the person submitting the application the same as the Authorized Contact?
Name of Authorized Contact:
This is the person responsible for signing the funding agreement.
Authorized Contact's Title:
Authorized Contact's Phone Number
Format: (000) 000-0000.
Authorized Contact's E-mail
Section 2. Innovate Alabama Qualifying Activity
Program Type
Please provide the cohort dates. The dates should reflect when participating companies have been selected and are expected to begin and complete their participation in the program.
Name of the Program Provider
Name of Project
Program Address (the location where the program will occur.)
City
State
Zip
County
Census Tract:
Which Alabama counties will this project serve? (Select all that apply.)If the project serves all counties statewide, select "All Counties" only.
Which industries does this program primarily serve? (Select all that apply.)If the program serves companies across a wide range of industries and is not focused on a specific sector, select "General/Industry-Agnostic" only.

Section 3. Innovate Alabama Program
(A) Describe the qualifying program. If the Innovate Alabama program is part of a larger program, describe the complete program and identify what portion is requested to be funded through Innovate Alabama.
Qualifying Program: Type your answer here.
(B) Alabama Company Eligibility & Intake Policy
I, the EDO acknowledge that, at the time of this application, the specific companies to be served may be unknown. Accordingly, EDO shall implement and maintain a written eligibility & intake policy requiring that no services will be provided to any company unless the company is documented as either (i) an Alabama-based company, or (ii) a company that has executed an Alabama location commitment. An “Alabama-based company” is a legal entity that is registered to do business in Alabama with active operations in the state. An “Alabama location commitment” means a written commitment executed by a company evidencing a bona fide intent to locate or expand operations in Alabama.
Describe your written eligibility & intake policy. An intake form will be provided with your funding agreement.
(C) Strategic Alignment & Industry Impact

Provide a narrative explaining how this Project aligns with the strategic mission of Innovate Alabama to grow the state’s innovation economy.
(1) Describe how the program addresses a specific gap in Alabama's current tech ecosystem (e.g., lack of early-stage mentorship, infrastructure needs, or workforce shortages).
(2) Explain how the project leverages Alabama’s existing competitive advantages (e.g., proximity to research universities, federal labs, or existing industrial hubs).
(D) Provide the expected overall schedule of the program to be undertaken:
Commencement date of the program:

MonthDayYear
Date
Completion date of the program:

MonthDayYear
Date
Describe what triggers "commencement of the program".
Describe what marks "completion of the program".

Section 4. Innovate Alabama Credit
(A) Innovate Alabama Funding Request Amount
Amount of Innovate Alabama funds you are requesting.
(Use this format $0,000,000)
(B) Provide a Narrative describing why the EDO's program should be funded through the Innovate Alabama Tax Credit program.
Type your Narrative answer here.
(C) In addition to the Innovate Alabama funding request, identify the amount and source of other funds requested and/or received to undertake the program.
Did you request/receive Private Funds
Amount of private funds
(Use this format: $0,000,000)
Source of private funds:

Section 5. Innovate Alabama Donations:
Innovate Alabama requires written evidence that at least 75% of the amount of the tax credits requested in the EDO’s application have committed donors at the time the application is submitted. If an EDO was previously awarded tax credits but was unable to obtain sufficient donations for all the tax credits awarded, that EDO will be required to provide written evidence that it has 100% of its donations committed in writing at the time the application is submitted. A LOS from each donor will be required to be included in the EDO’s application.
Donors may use their own Letter of Support letter or use the template attached HERE.
(A) Total Value of known Innovate Alabama Donations - This amount must match the amount of LOS that is uploaded in the section 5(B). * (Use this format: $0,000,000) The value of known Innovate Alabama donations cannot exceed the amount of the Funding Request in Section 4(A).
(B) Upload Letter(s) of Support from each of the donors listed in section 5(A).

You may upload multiple files
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(C) Provide the amount and source of funding available, in addition to the funding listed in Section 4(C), to fund the program should Innovate Alabama donors not provide 100% of the funding requested or should the Innovate Alabama scope of the program cost more than expected. If no additional funding is available, indicate accordingly, by typing "N/A" below.
Section 6. EDO Certifications:
(A) The undersigned hereby certifies that the EDO has in full force a conflict-of-interest policy consistent with IRS guidance for nonprofit organizations and this Innovate Alabama application does not violate the EDO's conflict of interest policy. The undersigned hereby affirms that, to the best of my knowledge and belief, the information in this application and any accompanying statement, schedules, and other information is true, correct and complete and that the undersigned is duly authorized to submit this information on behalf of the EDO.
(B) The EDO certifies that Innovate Alabama Tax Credit-supported services under this Project will be provided only to: (i) Alabama-based companies, or (ii) companies that have executed an Alabama location commitment.”
(C) The undersigned acknowledges that, if awarded, the EDO will be required to submit reports as outlined in the funding agreement. The undersigned specifically acknowledges that: (1) An Initial Report, including Eligibility & Intake Forms for all participating companies, must be submitted to Innovate Alabama no later than ten (10) days prior to the cohort dates listed in Section 2 of this application. For Innovative Companies or participants entering an incubator or program on a rolling basis throughout the project cycle, the EDO must submit the required Intake Form and documented proof of eligibility at least (10) days prior to that company beginning the program and receiving services. (2) Failure to provide documented proof of Alabama-based eligibility for cohort participants prior to the commencement of services may result in the forfeiture or recapture of tax credit funding. (3) The EDO certifies and acknowledges that no portion of the funds requested or received through the Innovate Alabama Tax Credit program shall be used to make direct or indirect equity investments in any company participating in the Project. All Innovate Alabama funding must be applied exclusively to the costs to create, operate, and support the qualifying program as detailed in the Cost Breakdown.

Section 7. Required Attachments:
1. CONFLICT OF INTEREST POLICY: Proof that the EDO has in full force and effect a conflict of interest policy consistent with that found in the instructions to Form 1023 issued by the Internal Revenue Service.

2. COST BREAKDOWN: The cost breakdown should provide the total cost to create, operate and support the program. The cost breakdown should not be pro-rated or limited to the Innovate Alabama request.

3. ECONOMIC IMPACT REPORT: Economic Impact Reports should include, but not be limited to, the direct and indirect economic impact to the state as well as the accompanying methodology and assumptions.

INNOVATE ALABAMA CREDIT PROGRAM DEFINITIONS

ACCELERATOR: A company which, for a fixed term, educates and mentors early-stage technology companies recruited to a location in Alabama, with the goal of accelerating the companies’ development and growth. Accelerator program must contain a defined curriculum and mentorship component.

ECONOMIC DEVELOPMENT ORGANIZATION: A state or local economic development organization, as defined in this application.

INNOVATE ALABAMA: The Alabama Innovation Corporation created by Section 41-10-802, of the Code of Alabama.

INNOVATE ALABAMA TAX CREDIT: A tax credit that may offset up to 50% of the following tax liabilities: income tax, state portion of the financial institution excise tax, insurance premium tax, state utility license tax. Donating taxpayers receive a credit equal to their donation and may carry the credit forward for up to five years.

INNOVATIVE COMPANY: Any company which meets all the criteria in either (1) or (2):

(1) The company is a for-profit business headquartered in a community eligible for investment through the federal New Markets Tax Credit program under federal code 26 USC § 45D(e), predominantly conducting an activity in an innovative industry, has fewer than 15 employees, and has average gross revenues of less than $1,000,000 in the previous three years.

(2) The company is a for-profit business, headquartered in Alabama and predominantly conducting an activity in an innovative industry, has fewer than 75 employees, and that is at least 51% owned and controlled by one or more women or African Americans who are citizens of the United States.

INNOVATIVE INDUSTRY: Includes advanced manufacturing, aerospace, agriculture, bioscience, biotechnology, electronics, energy and natural resources, engineering, life sciences, and information technology industries, and any other innovative industry as determined by Innovate Alabama in its sole discretion.

LOCAL ECONOMIC DEVELOPMENT ORGANIZATION: Organizations which are determined by Innovate Alabama to meet both of the following criteria:

(1) The organization is an Alabama entity not operating for a profit, including, but not limited to, a municipality or county, an industrial board or authority, a chamber of commerce, or some other foundation or Alabama nonprofit corporation charged with improving a community or region of the state.

(2) The organization has a record of supporting or otherwise participating in economic development efforts in some part of Alabama.

STATE ECONOMIC DEVELOPMENT ORGANIZATION: Organizations which are determined by Innovate Alabama to be an Alabama entity not operating for a profit which is charged with improving the state or a region of the state and has a record of supporting or otherwise participating in economic development efforts in the state. A state EDO must confirm eligibility with Innovate Alabama prior to applying.

TECHNOLOGY COMPANY: Any company which earns or reasonably expects to earn at least 75% of its revenues from either (1) or (2):

(1) NAICS Codes 518, 5112, 5121 (other than 51213), 5415, 5417, or 51913; or

(2) The use of technology to develop new coding or processes for the creation or delivery of goods or services in the following fields:

a. Any of the fields of education, healthcare, energy, agriculture, infrastructure, software, robotics, nutrition, aerospace, automotive, or financial services.

b. Any fields related to science, technology, engineering, or mathematics.

Tax Credit Project Application

Section 1. Economic Development Organization (EDO) Information

Section 2. Innovate Alabama Qualifying Activity

Section 3. Innovate Alabama Program

(A) Describe the qualifying program. If the Innovate Alabama program is part of a larger program, describe the complete program and identify what portion is requested to be funded through Innovate Alabama.

(B) Alabama Company Eligibility & Intake Policy

(C) Strategic Alignment & Industry Impact

(D) Provide the expected overall schedule of the program to be undertaken:

Section 4. Innovate Alabama Credit

(A) Innovate Alabama Funding Request Amount

(B) Provide a Narrative describing why the EDO's program should be funded through the Innovate Alabama Tax Credit program.

(C) In addition to the Innovate Alabama funding request, identify the amount and source of other funds requested and/or received to undertake the program.

Section 5. Innovate Alabama Donations:

Section 6. EDO Certifications:

Section 7. Required Attachments:

Section 8. Reporting

For development purposes