HB485 Alabama 2011 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Barry Mask
Republican
Co-Sponsors: Jim Patterson Ken Johnson Becky Nordgren Wes Long Dan Williams Lynn Greer William Roberts Terri Collins Daniel H. Boman
Session: Regular Session 2011
Title: Data processing centers locating in Alabama, certain ad valorem tax and construction related transaction tax abatements authorized, requirements, Data Processing Center Economic Incentive Enhancement Act, Secs. 40-9B-3, 40-9B-4, 40-18-193 am'd. (2011-20579)
Summary: HB485 would expand and extend tax abatements for data processing centers in Alabama, including software taxes, and lower the requirements to attract more centers.
What This Bill Does
It allows local authorities to abate ad valorem taxes and construction-related taxes for data processing centers for up to 30 years and includes taxes paid on computer software used in the center. It lowers the employment threshold so more centers can qualify, defining a data processing center as creating at least 50 new jobs with average wages of at least $40,000. It expands the types of property that can be abated (servers, software, cooling/power infrastructure, etc.) and links the maximum exemption period to total capital investment, with 10, 20, or 30-year options, while requiring local government approval for each abatement and enabling inclusion of energy-related capital credits rules for these centers.

Who It Affects
Private users of data processing centers who meet the job and investment thresholds and would receive abatements on ad valorem taxes, construction-related taxes, and certain other taxes for up to 30 years.
Local governments (counties, municipalities) and public authorities that grant abatements to data processing centers and must approve abatements by resolution, subject to maximum-period rules and property scope.

Key Provisions
Abatement of ad valorem taxes and payments in lieu, construction related taxes, and mortgage/recording taxes for data processing centers for up to 30 years, including taxes paid on computer software used in the center.
Data processing center defined as an establishment with at least 50 new jobs and average annual compensation of at least $40,000, engaged in data processing and related services.
Abated property scope includes all real and personal property comprising the data processing center, such as computers, software, cooling and power infrastructure, and other equipment necessary for operation, with costs that may be capitalized for tax purposes.
Maximum exemption period determined by private investment: 10 years if aggregate investment $100 million and $300 million, with an alternative calculation based on weighted average economic life if used instead of the investment thresholds.
Abatements may be allocated among multiple private users according to ownership interests in the project, with proportional limitations applied to each owner.
Local governing bodies must adopt a resolution approving the specific abatement(s); abatements do not take effect without this local approval.
Act becomes effective immediately upon passage and approval, with severability and standard law adjustments preserved.
Amendments to 40-9B-3, 40-9B-4, and 40-18-193 incorporate data processing centers into capital credit considerations, establishing minimum job and wage requirements and allowing capital credits to be allocated across tax years, including compliance and potential forfeiture rules if requirements are not met.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation