HB 346 would prevent businesses that violate human trafficking or child labor laws from receiving Alabama Jobs Act tax incentives. Specifically, it requires companies found guilty of violating these laws to pay back the full value of any tax breaks, grants, or abatements they received. The bill also updates Alabama law to mandate that the Secretary of Commerce verify businesses do not engage in such violations before approving tax incentives. This directly affects any business seeking economic development tax incentives under Alabama's Jobs Act.
SB 214 amends Alabama's Sweet Home Alabama Tourism Investment Act to clarify that a $2.5 million annual tax rebate is in addition to (not replacing) initial rebates for qualifying tourism projects. It requires approved companies to verify actual project costs through certification by an independent CPA, ensuring transparency in rebate claims. The bill directly affects tourism businesses - like resorts, theme parks, or historic district attractions - that seek tax rebates for qualifying projects with minimum private investments of $35-75 million. Key changes prevent misuse of funds by mandating verified cost documentation while maintaining the existing rebate structure for tourism development.
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Economic Development
HB 278 makes Alabama's existing income tax credit for volunteer firefighters and rescue squad members permanent and expands it to cover three new categories: members certified at Firefighter I level, Emergency Medical Responders, and fire support persons. The credit amount varies by certification, ranging from $200 to $600 annually, depending on the specific role and training level. To qualify, members must complete 30 hours of approved annual training and submit proof through a standardized certification process to the Department of Revenue. This change applies to tax years beginning January 1, 2027, replacing the previous temporary 2023-2026 window.
SB 134 creates a new permit requirement for businesses that buy tobacco products directly from manufacturers (or their affiliates) and resell them to other permitted Alabama wholesalers across state lines. It directly affects interstate tobacco resellers who operate in multiple states but do not sell directly to end consumers. The bill requires these businesses to register with Alabama’s Department of Revenue as "interstate warehousers" and imposes penalties for failing to comply. Existing rules for tobacco sellers remain unchanged for businesses operating solely within Alabama.
HB 155 removes the annual verification requirement for veterans certified by the U.S. Department of Veterans Affairs as permanently and totally disabled to maintain a property tax exemption on their primary home in Alabama. Currently, these veterans must annually sign and return a form to confirm their disability status; the bill eliminates this step, making the exemption automatic after initial approval. The change applies only to veterans who already qualify under existing law and remains in effect until the veteran dies or moves to a new primary residence. The bill also includes minor technical updates to the tax code language.
HB 262 restricts historical racing wagering (computerized betting on past horse races) to six specific locations in Alabama: Greene, Jefferson, Macon, Mobile, Houston, and Lowndes counties. It replaces the existing 1% state tax on pari-mutuel pools with a new 4% tax on net revenues from historical racing operations, and repeals multiple local taxes previously levied in Greene, Macon, and Mobile counties. Operators must pay the new tax monthly to the Alabama Department of Revenue, and this tax supersedes all other state and local taxes for historical racing activities. The changes take effect on October 1, 2026, and do not affect taxes for live horse racing or simulcast events.
SB 125 creates a state income tax credit for Alabama restaurants that donate oyster shells to approved recycling programs. Restaurants can claim a credit of $1 for every 50 pounds of shells donated, up to a maximum of $2,000 per business annually, with a total annual cap of $100,000 across all restaurants. The credit applies to tax years 2026 through 2030 and requires restaurants to maintain records for verification. This policy directly affects restaurants participating in oyster shell recycling, incentivizing them to support coastal conservation efforts through tax benefits.
HB 308 proposes a constitutional amendment to allow Mobile County residents aged 65 or older to claim a property tax exemption on their primary residence. To qualify, homeowners must own a single-family, owner-occupied home used as their principal residence for at least five years before claiming the exemption. The exemption freezes the property’s assessed value from the year prior to claiming (effective October 1, 2027), while requiring annual renewal through the Mobile County Revenue Commissioner by December 31 each year. This change would directly affect Mobile County seniors meeting the age and residency criteria, but requires voter approval to become part of Alabama’s constitution.
SB 217 defines "mixed spirit beverages" as drinks containing no more than 7% alcohol by volume, creating a new category currently regulated like liquor (not distributed through beer/wine channels). The bill establishes a licensing system requiring these beverages to be distributed through licensed wholesalers to licensed retailers (except ABC stores), imposes an excise tax on distribution, and mandates exclusive sales territories with binding distribution agreements between suppliers and wholesalers. It also sets penalties for retailers selling to individuals under 21 and adds labeling/display requirements to prevent misleading marketing. This directly affects businesses producing, distributing, and selling these low-alcohol beverages in Alabama.
HB 167 would change Alabama's property tax rules by replacing a fixed 7% annual cap on assessed value increases with a cap tied to the annual inflation rate (measured by the Consumer Price Index). This directly affects property owners, particularly those with Class II and III properties, as their annual tax assessments would now rise or fall based on inflation rather than a fixed percentage. The bill applies retroactively from October 1, 2024, and continues through 2027, with exceptions for new construction, property transfers between family members, and certain ownership changes. The change aims to align property tax increases more closely with actual cost-of-living changes.
