Economic Development Incentives
Balch & Bingham has represented new industries locating in the southeastern United States for over 30 years. Since 1990, we have been involved in some capacity in most every major economic development project locating in Alabama during that period. Our practice in this area can be divided into three categories: Incentive Legislation, Public Sector Representation, and Private Sector Representation.
We believe that our experience in economic development in the past decade has been broader and more consistent than any other law firm in the region
Balch attorneys have either drafted or co-drafted virtually every piece of significant economic development incentive legislation that is or has been in effect in Alabama. Importantly, we drafted, in partnership with the Alabama Department of Commerce, the Alabama Jobs Act, the Alabama Reinvestment and Abatement Act, the Growing Alabama Act, and the port credit legislation. These legislation acts provide for the investment tax credits, refundable jobs fees, enhanced tax abatements, site development tax credits, and port credits, among other incentives, that are the major incentives available to projects today. Our attorneys also drafted the Tax Incentive Reform Act of 1992, which also provides for our current tax abatement incentives. We co-drafted the old Capital Credit Legislation that has now been replaced with the Alabama Jobs Act income tax credits. We also drafted the legislation in the early 1990s, which became known as the "Mercedes Act," and the legislation and regulations governing Alabama’s system for allocating state volume cap applicable to tax-exempt bonds.
Public Sector Representation
Balch has extensive experience representing the "public sector" in economic development projects. Most notably, we represented the State of Alabama in the negotiations which led to the location of the Mercedes assembly plant in Vance, Alabama. Our lawyers also represented the State and The Economic Development Partnership of Alabama, Inc. (a private non-profit organization dedicated to Alabama’s economic development) in the negotiation of the project agreement under which Honda Motor Company located its automobile assembly plant in Lincoln, Alabama. Balch again represented the State and The Economic Development Partnership in project negotiations with The Boeing Company relating to Boeing’s Delta IV Rocket Booster Assembly Plant in Decatur, Alabama. Additionally, our attorneys represented The Economic Development Partnership in negotiating portions of the project agreement with Ipsco Steel pursuant to which Ipsco located its steel fabrication facility in Mobile, Alabama.
Private Sector Representation
We routinely represent large and small projects with incentive negotiations and incentive implementation with the State of Alabama and localities. Notable projects include:
- Representing a large automotive supplier in its negotiation and implementation of incentives with the State of Alabama and localities for a $100 million automotive stamping facility;
- Representing a manufacturer in its negotiation and implementation of incentives with the State of Alabama and localities for a $100 million manufacturing facility;
- Representing an automotive manufacturer in its site selection process and the negotiation and implementation of incentives for a $1 billion automotive assembly plant in the Southeast.
- Representing an automotive manufacturer in its negotiation and implementation of incentives with the State of Alabama and localities for an engine assembly plant.
Balch is well-qualified to assist clients with their site location needs in the southeast. Our experience in representing both the public and private sectors, and our familiarity with the principal public officials involved in the decision-making process, both gained during the course of many projects, have provided us with unique insights and sensitivity with respect to the balancing act that is often required to accommodate the desires of industry with the resources and limitations of state and local entities. Subsequent to the site selection process and initial project construction, we also can provide the full range of legal services (environmental, labor, employment, tax, litigation, etc.) commonly needed in the on-going business of the company.