Alabama Ranks 11th for R&D Dollars Received Annually

Reports indicate that an estimated $2.4 billion is spent annually specifically on research and development in Alabama, with the state ranking 11th for the amount of R&D dollars received each year.

Major federal agencies provide R&D funding to Alabama in addition to companies claiming federal incentives such as the R&D tax credit. These include The Department of Defense, which alone accounts for approximately 52 percent of all R&D state funding, The Department of Health and Human Services, which accounts for approximately 6 percent, while the National Aeronautics and Space Administration (NASA) accounts for 35 percent. The rest of the federal R&D funding is sourced collectively from the Department of Agriculture, Department of Energy, the Environmental Protection Agency and other agencies. Federal R&D grants are provided to university institutions and non-academic institutions in Alabama and companies can also benefit from the federal R&D tax credit.

Some of the units that have benefited from the R&D tax credit and grants in Alabama include the Fish Diseases and Parasites Research Laboratory, DOI’s Alabama Cooperative Fish and Wildlife Research Unit, The National Soil Dynamics Laboratory and the Andrews Forestry Sciences Laboratory. These, alongside others in the state have continually been encouraged to engage in research and development through R&D incentives.

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