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Alabama does not have special “set aside” incentives for the state to use Veteran Owned businesses at this time, though it has been under discussion by state legislature.

Occupational Licensing:

Any bona fide permanent resident of Alabama who is a veteran of WWII or at any time past, present or future, when the United States was, is or shall be engaged in hostilities with any foreign state and who has physical disabilities of 25% or more whether service-connected or not, may be exempt from business or occupational license taxes.  A veteran who conducts his/her business as a means of livelihood through his/her personal efforts and has no more than one employee shall be entitled to licenses from the state/county/municipality to carry on such business upon the payment of license taxes that shall not exceed $25.00.  However, a veteran whose property (both real and personal) is valued at $5,000.00 or more or whose net income is $2,500.00 or more is not entitled to these business and occupational license exemptions.  (Ala. Code §§ 40-12-340-352)

What this means: WWII Veterans and wartime veterans who have at least 25% disability may not have to pay occupational licensing.


Effective January 1, 1989, and for all successive tax years, all compensation received as retirement benefits by any person retired from the military service of the United States of America and survivor benefits derived there from are hereby exempt from any state, county or municipal income tax or similar tax.  (Ala. Code§ 40-18-20)

What this means: Alabama military retirees after 1989 are exempt from state, county, and municipal income taxes.

Alabama Links

Alabama Veteran’s Affairs: Alabama’s Department of Veteran Affairs, and source for Alabama Veteran benefit information.

Alabama SBDC: This is the Veteran Business assistance program for Alabama’s Small Business Development Center. The SBDC offers free bid-matching services to all Alabama small businesses.

Alabama Division of Purchasing: This division is the State of Alabama’s purchasing site. From this page you can register to be a vendor  and find out about open contracts in the State.