Abatements; local governments, power to abate revised

This bill requires that local governments in Alabama, including municipalities, counties, and public industrial authorities, must obtain approval from the Secretary of Commerce and the Governor before granting tax abatements for the state portion of certain taxes on industrial property. Under current law, local entities could abate both state and local taxes independently, but this legislation adds a state-level review process specifically for state tax abatements. The bill mandates that local governments submit written requests with details about the proposed tax reduction, duration, and financial analysis to the Secretary of Commerce, who will evaluate the project's return on investment and check for any prior defaults on economic agreements before recommending the abatement to the Governor. This change applies to abatements for construction-related transaction taxes and ad valorem taxes on private use industrial property, with specific provisions for data processing centers and technical corrections to existing tax abatement procedures. The new requirements take effect on October 1, 2026.