HB 626 Alabama House · 2026 Regular Session

Tax increment districts, Major 21st Century Manufacturing Zone allowed to be located within a tax increment district without regard to size of district and further provides for use of ad valorem tax revenues collected within a district

This bill modifies rules for tax increment districts in the state, allowing major 21st Century Manufacturing Zones to be located within these districts regardless of the district's size. It specifically expands the list of eligible industries to include ship building, medical, pharmaceutical, semiconductor, computer, and aviation sectors. The legislation also permits the use of ad valorem tax revenues collected within these districts to support the designated manufacturing zones. These changes aim to provide more flexibility in economic development efforts by broadening which industries can benefit from tax increment financing.

Bill status signed all 5 stages cleared

Introduction

Mar 2026

Committee Review

Apr 2026

House Passage

Mar 2026

Senate Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Mar 17, 2026 Signed Apr 17, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 4 edits · Apr 17, 2026

MODERATE

The bill was finalized as an enrolled version, incorporating several substantive changes to the definitions of a 'Major 21st Century Manufacturing Zone.' The most significant addition is a new category for 'predominantly open' areas that hinder economic growth, expanding eligibility beyond just blighted or distressed zones. Additionally, the definition of 'Local Finance Officer' was broadened to include agents responsible for revenue handling, and the definition of 'Project' was expanded to explicitly include efforts to prevent the spread of blight.

Scope change

The bill's scope was expanded to include 'predominantly open' areas as eligible zones for the Manufacturing Zone program, in addition to previously defined blighted or economically distressed areas.

DEFINITION

Added a new definition for 'predominantly open' areas, allowing zones to be designated based on obsolete platting or diversity of ownership that impedes economic growth, rather than just existing blight.

Expanded the definition of 'Local Finance Officer' to include agents responsible for revenue receipt and disbursement, broadening who can manage the program's finances.

Added a new definition for 'Project' that explicitly includes preventing the development or spread of blight, clarifying that proactive blight prevention counts as a qualifying project.

TECHNICAL

Corrected line breaks and formatting inconsistencies between the engrossed and enrolled versions to ensure the final legal text is clean and readable.

Introduced → Engrossed · 4 edits · Apr 7, 2026

MODERATE

The bill was updated from its introduced version to its engrossed version, incorporating substantive policy changes and technical corrections. The most significant change is the addition of a new definition for 'Major 21st Century Manufacturing Zone,' which now requires the area to be suitable for specific high-tech industries like automotive, semiconductor, or pharmaceutical manufacturing, in addition to meeting size and capital expenditure requirements. The bill also expanded the definition of a 'blighted area' to include zones certified by the Governor for federal disaster assistance and clarified the definition of a 'local finance officer.' Additionally, the bill text was corrected to reference the correct Act number (2026-104) and updated the title to reflect these new provisions and technical style revisions.

Scope change

The scope of the bill was expanded to explicitly include specific high-tech industries (automotive, aviation, medical, semiconductor, etc.) as eligible for the Major 21st Century Manufacturing Zone designation, whereas the introduced version did not list specific industries. The definition of blighted areas was also broadened to include federally certified disaster zones.

DEFINITION

Added a new definition for 'Major 21st Century Manufacturing Zone' that specifies the zone must be suitable for high-tech industries such as automotive, aviation, medical, semiconductor, computer, electronics, energy conservation, cyber technology, or biomedical manufacturing.

Added a new subsection to the definition of 'Blighted or Economically Distressed Area' to include areas where the Governor has certified a need for federal disaster assistance.

Clarified the definition of 'Local Finance Officer' to explicitly include an 'agent' responsible for revenue receipt and disbursement.

TECHNICAL

Corrected a reference to the amending Act from 'Act 2026-106' to 'Act 2026-104' and updated the bill title to include the new industry-specific criteria and technical style revisions.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 7, 2026

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 1176

upper

Apr 1, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Mar 31, 2026

Upper · Passed

Pending Committee Action in Second House (Tourism)

upper

Mar 31, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1080

lower

Mar 31, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 1079

lower

Mar 31, 2026

Introduced

Pringle 1st Amendment Offered

lower

Mar 31, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 1078

lower

Mar 31, 2026

Introduced

Economic Development and Tourism Engrossed Substitute Offered (Economic Development and Tourism)

lower

Mar 18, 2026

Lower · Passed

Reported Out of Committee House of Origin (Economic Development and Tourism)

lower

Mar 17, 2026

Lower · Passed

Pending Committee Action in House of Origin (Economic Development and Tourism)

lower

1 primary · 0 co-sponsors