SB15 Alabama 2011 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2011

Title

Businesses, certain companies that create jobs, tax incentives authorized, requirements and standards for qualification

Summary

SB15 would create a broad set of Alabama tax incentives to encourage job creation, infrastructure investments, and welfare-to-work hiring across designated counties and business types.

What This Bill Does

It would allow annual job credits for a range of eligible facilities (like manufacturing, tourism, processing, warehousing, R&D, and service-related facilities) with county-based tiers and per-employee limits, available for up to five years if minimum job levels are kept. It designates counties into distressed, underdeveloped, moderately developed, and developed categories and offers higher credits in certain counties or when located near military installations. It also adds an infrastructure credit for water/sewer/road projects, a welfare-to-work credit for employers hiring welfare recipients (including an extra amount in distressed counties), and allows credits to be carried forward or transferred in mergers and to pass through to owners or partners. The credits can be claimed by various business forms, including corporations and pass-through entities, and some credits require health insurance and certification guidelines.

Who It Affects

• Employers and businesses in Alabama that create new full-time jobs or invest in qualified facilities (including corporations, partnerships, LLCs, and S corporations) and may receive annual job credits, infrastructure credits, or welfare-to-work credits.
• Counties and their residents, particularly those designated as distressed, underdeveloped, moderately developed, or developed, who may experience increased investment and job opportunities, as well as welfare recipients and their potential employers who could qualify for specific welfare-to-work credits.

Key Provisions

• Defines eligible facility types and terms (e.g., Corporate Headquarters, Distribution Facility, Extraordinary Retail Establishment, Manufacturing Facility, Processing Facility, Tourism Facility, Warehousing Facility, Research and Development Facility, Technology Intensive Facility, Qualifying Service-Related Facility, and Taxpayer).
• Provides annual job credits for eligible facilities and activities, with county-tier adjustments and per-employee credit limits (up to $5,000 per employee per year, higher in distressed counties at times; up to $5,500 in some cases). Includes special increases for counties not traversed by interstates and for counties with certain employer losses.
• Allows a five-year credit period beginning with the year new full-time jobs are created, subject to maintaining a minimum level of new jobs; credits may be claimed by corporations and pass-through entities and can transfer or be carried forward under specified rules.
• Establishes an infrastructure project credit for water/sewer lines and related roads, providing 50% of eligible expenses up to $10,000 per year, with a $30,000 carry-forward limit and allocation of expenses to beneficiaries when multiple parties benefit.
• Creates a welfare-to-work credit for employers who hire welfare recipients, with wage credits of 20% (first year), 15% (second year), and 10% (third year) of wages, plus an extra $175 per month for up to 36 months in distressed or least developed counties; includes health insurance requirements and verification procedures.
• Allows credits to be carried forward (up to 15 years for welfare credits and 15 years for corporate/operational credits) and, in some cases, transferred in mergers or asset transfers to continuing taxpayers.
• Imposes certification, reporting, and regulatory requirements to substantiate eligibility, with rules to determine qualifying net increases or decreases and to ensure proper usage of credits.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Business and Commerce