Budget & Taxes (Economic Development)

in committee · Alabama · House Mar 31, 2026

HB 660: Beginning Farmer and Succession Continuity Act established; income tax credit, fund, and loan guarantee program created.

HB 660 creates the Beginning Farmer and Succession Continuity Act to help new farmers in Alabama acquire land by offering financial incentives and support. The bill provides a refundable income tax credit of up to $200,000 to landowners who sell or lease farmland to qualified beginning farmers, provided the land remains in agricultural use for five years. It also establishes a state-backed loan guarantee program covering up to 75% of eligible loans and sets up an online registry to connect retiring farmers with newcomers. Additionally, the act creates a dedicated assistance fund, requires annual reporting on program outcomes, and includes audit provisions to ensure compliance with eligibility rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a refundable income tax credit and establishes a loan guarantee program, directly funding agricultural development and offering tax relief.90% confidence

Sub-Topics Audits & Accountability Tax Credits Tax Incentives Tags Agriculture Economic Development

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in committee · Alabama · House Mar 3, 2026

HB 554: State Energy Supply and Chemical Trade Stabilization Act established; income tax credit, grant program, and loan program created.

This bill establishes the State Energy Supply and Chemical Trade Stabilization Act to support Alabama's energy and chemical manufacturing sectors by addressing risks from global trade disruptions. It creates three main financial tools: a grant program with up to $2 million annually for facilities to mitigate trade-related losses and upgrade infrastructure, a refundable income tax credit covering 30% of qualifying investments capped at $2 million per year, and a low-interest loan program for site development and equipment. The legislation also forms a five-member board to assess trade vulnerabilities and recommend strategies for securing supply chains, with the department responsible for implementing rules and the act taking effect on July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates grant, tax credit, and loan programs to fund energy and chemical sector development, directly advancing state budget and economic development goals.85% confidence ✓ EnergySupports EnergyBill creates grant, tax credit, and loan programs to support energy supply and chemical manufacturing sectors, strengthening energy infrastructure and economic development.90% confidence

Sub-Topics Income Tax Tax Credits Tags Economic Development

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passed · Alabama · Senate Apr 1, 2026

SB 370: 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 Alabama's economic development laws to allow Major 21st Century Manufacturing Zones to be established within existing tax increment districts regardless of the district's size. It permits public entities to use ad valorem tax revenues collected within these districts to reimburse costs for acquiring land before the tax increment district was created. The legislation also includes technical updates to align the code with current language standards. These changes directly affect local governments, public entities, and developers involved in manufacturing projects and economic revitalization efforts.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill promotes economic development by allowing manufacturing zones within tax districts, potentially increasing state revenue through business growth and job creation.75% confidence

Sub-Topics Tax Incentives Tags Economic Development

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signed · Alabama · House Apr 17, 2026

HB 626: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands economic development incentives by allowing manufacturing zones in tax increment districts and permits use of ad valorem tax revenues to support these zones, promoting fiscal investment in key industries.85% confidence ✓ TechnologySupports TechnologyBill expands eligibility for manufacturing zones to include semiconductor and computer sectors, providing tax revenue support for technology manufacturing development.75% confidence

Sub-Topics Tax Incentives Tags Economic Development

passed · Alabama · Senate Mar 31, 2026

SB 369: Lauderdale County; Economic Development Authority and Economic Development Authority Fund established, county commission authorized to levy additional sales and use tax

This bill creates the Lauderdale County Economic Development Authority to support existing businesses, attract new industries, and coordinate economic development efforts across the county. The authority will be governed by a five-member board appointed by the county commission, which can hire an executive director and manage funds through a new Economic Development Authority Fund. To finance these efforts, the bill authorizes the county commission to levy an additional sales and use tax of up to 0.75 percent, with proceeds deposited into the fund and exempting already tax-exempt businesses from the new tax. The legislation takes effect on October 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes new sales tax to fund economic development authority, strengthening local fiscal capacity and supporting business growth initiatives85% confidence

Sub-Topics Sales Tax Tags Economic Development

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in committee · Alabama · House Mar 10, 2026

HB 594: Creates the Rural Industry Reshoring and Reinvestment Act; creates the Rural Reshoring Tax Credit Program; creates Rural Industrial Site Development Grant Program

This bill establishes the Rural Industry Reshoring and Reinvestment Act to attract manufacturing and supply chain companies to rural areas of Alabama by offering financial incentives. It creates a tax credit program that provides eligible businesses with up to 5% of qualifying payroll for up to 10 years when they create at least 15 full-time jobs with wages at or above the county median, plus an additional 10% bonus for projects that replace imported supply chains. The legislation also sets up a grant program to fund infrastructure improvements like roads, utilities, and broadband at rural industrial sites, with a separate grant for job creation based on the number of new positions. The Department of Commerce will designate specific rural areas as opportunity zones based on population and economic indicators, and these designations will be reviewed every three years.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits and grants for rural economic development, providing financial incentives to businesses and promoting state economic growth through targeted funding programs.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates tax credits for businesses creating jobs with wages at or above county median, directly supporting employment and wage standards.75% confidence

Sub-Topics Tax Credits Tags Economic Development

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in committee · Alabama · House Mar 10, 2026

HB 596: Economic Development; small towns, programs established to fund businesses, reuse of properties, and other grants, administered by Alabama Department of Economic and Community Affairs; tax credit established

This bill establishes the Main Street Revival Act to support economic development in small Alabama towns with populations under 25,000. It creates four grant programs administered by the Alabama Department of Economic and Community Affairs to help businesses start or expand, preserve historic commercial buildings, support temporary retail spaces and business mentorship, and assist local governments with updating zoning and land use regulations. Additionally, the bill creates a 25 percent income tax credit for property owners who renovate eligible vacant or underutilized commercial properties. Funding for these programs depends on future legislative appropriations, and the law takes effect on January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes grant programs and tax credits to fund economic development in small towns, directly advancing budget and taxation through new funding mechanisms.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Tags Economic Development Small Business

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in committee · Alabama · Senate Feb 10, 2026

SB 291: Tax incentives; reimbursement for violation of labor and trafficking laws provided for

SB 291 would prevent businesses that violate human trafficking or federal child labor laws from keeping economic tax incentives under Alabama's Jobs Act. If an entity violates these laws, it must reimburse the state and local governments for all tax incentives, grants, or abatements received. The bill also requires the Secretary of Commerce to verify applicants comply with these labor laws before approving incentives. These changes update Alabama law to close a loophole allowing violators to retain tax benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole allowing violators to retain incentives, requiring reimbursement and verification to ensure fiscal accountability under Alabama's Jobs Act.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentPrevents businesses violating labor laws from retaining tax incentives, enforcing compliance to protect workers' rights and close loopholes.95% confidence

Sub-Topics Tax Incentives Child Labor Labor Standards Tags Economic Development

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signed · Alabama · House Mar 3, 2026

HB 416: Cleburne County; Cleburne County Economic Development Authority, established

HB 416 establishes the Cleburne County Economic Development Authority to lead industrial and economic growth efforts in Cleburne County, directly affecting local businesses, residents, and county decision-makers. The bill creates a board of directors (appointed by county commissioners from each district) to develop economic plans, with authority to offer tax breaks for job creation and issue bonds - but only with approval from the county commission and without exemptions for board members or their businesses. Funding will come from county appropriations, tobacco tax revenue, and grants. The authority becomes operational on October 1, 2026, and must hold its first meeting by November 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes tax breaks for job creation, a form of tax relief to stimulate economic growth, aligning with fiscal policy support indicators.85% confidence

Sub-Topics Revenue Tags Economic Development

signed · Alabama · Senate Apr 16, 2026

SB 289: Growing Alabama Act amended to allow sites owned by more than one local economic development organization to qualify

SB 289 amends Alabama's Growing Alabama Act to allow tax credits for site improvements when the site is owned by multiple local economic development organizations, provided all parties listed on the deed are eligible applicants. Previously, only sites owned by a single organization qualified for these tax credits. The bill removes the single-ownership requirement, enabling joint applications from multiple eligible organizations to fund infrastructure improvements. This directly affects local economic development groups and businesses that may benefit from improved sites funded through these credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax credit eligibility for economic development organizations, providing tax relief and directly affecting state tax policy and budget through increased credit access.90% confidence

Sub-Topics Tax Incentives Tags Economic Development