Budget & Taxes (Revenue · Economic Development)

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.

HB 399 modifies tax incentives for large data processing centers in Alabama. It limits the maximum tax exemption period to 20 years starting January 1, 2027, and requires these centers to pay state noneducational ad valorem taxes and sales taxes on building materials, power infrastructure, and other specific purchases beginning in 2027. The bill extends the sunset date for existing tax abatements related to data centers and updates code language for clarity. This directly affects new or expanded data centers meeting job and wage thresholds (20+ jobs averaging $40,000+ annual compensation). The changes aim to balance economic development incentives with increased tax revenue collection for infrastructure investments.