Alabama entrepreneurs and innovators can once again apply for up to $250,000 in supplemental funding, and a new program is also launching to support entrepreneurship in the state.
Innovate Alabama has opened applications for its third round of the Innovate Alabama Supplemental Grant Program at the same time as it is launching the Innovate Alabama Tax Credit program.
The Supplemental Grant Program aims to support entrepreneurs from underrepresented groups, such as women, minorities and rural founders. In addition, the disbursement of funding is a bid to advance Alabama’s economy by driving research and commercialization, developing exportable products and services and spurring high-wage job opportunities.
In July, Innovate Alabama launched the inaugural Innovate Alabama Supplemental Grant Program, awarding over $4.5 million in supplemental funding to 30 grant recipients in six Alabama cities to support the growth of their small businesses.
In March, it named more recipients, awarding more than $3 million to 19 small businesses across the state.
Many of those recipients were based in the Birmingham metro area, including Analytical AI, which specializes in artificial intelligence; Cleaned and Green, which specializes in the conversion of poultry litter into fertilizer; MRIMath, a physician-in-the-loop AI-driven platform; Sync, which specializes in proactively identifying high-risk vegetation; Tricorder Array Technologies, which is developing a wireless device that collects environmental and mouse squeaks in research cages to understand the behavior and environment influence on animal studies; and Adjuvax, which specializes in vaccine adjuvant discovery and development.
Innovate Alabama previously said it had about $2.4 million in remaining funds for the 2023 fiscal year following the most recent funding round.
The organization has also opened applications for its Innovate Alabama Tax Credit program, which resulted from the recent passage of the Innovation and Small Business Act, a component of Gov. Kay Ivey’s “The Game Plan.” The new program aims to build on the Alabama Department of Commerce’s Growing Alabama program, which provided assistance to tech accelerators and underrepresented companies.
Innovate Alabama’s discretionary program will provide support to programs for innovative small businesses, small businesses in innovative industries that are owned by historically underrepresented populations and tech accelerators, and it represents a growing set of support tools for innovative businesses and programs statewide. Similar to the Growing Alabama program, the Innovate Alabama Tax Credit program will provide tax credits to economic development organizations that may be used to offset up to 50% of a donor’s income taxes, financial institution excise taxes, insurance premium taxes or utility taxes.
“Through this program, we can continue to serve the innovative small businesses of Alabama and show that our state is open for business to other such companies looking to relocate," said Cynthia Crutchfield, Innovate Alabama CEO. "We are dedicated to working with governmental leaders to create a ripe ecosystem for tech accelerators and businesses to thrive.”
With applications now open, the first deadline for applicants is June 16.
“We saw an opportunity to increase the impact of tax credits to incentivize investment in small businesses and tech accelerators doing groundbreaking work in our state, and the Innovate Alabama Tax Credit does just that. These organizations are essential to the work Innovate Alabama is doing to help innovators grow roots in Alabama,” said Innovate Alabama board member and Alabama House Minority Leader Anthony Daniels. “This new tax credit driven by Innovate Alabama can help us uplift underrepresented entrepreneurs and incentivize and grow innovative industries right here in Alabama.”
