Alabama taxes farm and manufacturing machinery at a reduced 1.5 percent state rate, follows the federal code on Section 179 and bonus depreciation, and has a construction economy driven by auto plants, the Huntsville defense and aerospace cluster, timber, and the Port of Mobile. Contractors and haulers here work steel, pine, and red clay, and they buy equipment to match.
We place Alabama files with lenders that fund construction, forestry, farm, and trucking equipment across the state, from a Birmingham site-work contractor to a Huntsville crane company to a south Alabama logging crew. Options in 24 to 48 hours on a soft inquiry.
Who we finance in Alabama
What is driving equipment demand in Alabama
- Huntsville aerospace and defense construction continues to expand.
- Port of Mobile growth is adding container and drayage capacity.
- Auto plant and supplier investment across the I-65 and I-20 corridors.
We work with businesses across Alabama, including Birmingham, Huntsville, Mobile, Montgomery, and Tuscaloosa, and the rural counties in between.
Sales tax and income tax on equipment in Alabama
Tax rules change and depend on your facts. Confirm with your accountant before relying on any of this.
Trucks, trailers, and titling in Alabama
- Apportioned registration for interstate carriers through ALDOR. No weight-distance tax.
- Off-road equipment is not titled or plated.
Where Alabama buyers find equipment
We finance equipment from any dealer, auction, or private seller. Dealers and auctions our Alabama customers use include Thompson Tractor (Caterpillar, Alabama and northwest Florida), SunSouth (John Deere). Get pre-approved before you go so the seller sees a buyer who can close.
Equipment we finance
Excavators · Dozers and loaders · Skid steers · Semi trucks · Trailers · Farm equipment · Cranes and lifts
About financing in Alabama
Equipment financing in Alabama is arranged through Land Tech Capital's network of third-party lenders and lessors. Land Tech Capital is a New York based commercial finance broker, not a lender, and does not hold a Alabama license. Your financing agreement will be with the lender or lessor, who provides any disclosures Alabama law requires. No fee is charged to you before funding, and we are paid by the lender when a deal closes.
Questions we get
Is a dozer taxed at 1.5 percent in Alabama?
Machinery used in manufacturing, mining, or quarrying, and farm machinery, qualify for the reduced 1.5 percent state rate. General contracting equipment is usually taxed at the full rate; the dealer applies the rate based on use.
Do you finance logging equipment in Alabama?
Yes. Forestry is a specialized program with age and hour limits that depend on the lender. Log trucks go on the truck programs.
Does Alabama allow full bonus depreciation?
Yes. Alabama follows the federal code, so 100 percent bonus depreciation and the federal Section 179 limit apply on the state return.
