SB150 Alabama 2011 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Bryan TaylorGerald O. DialClay ScofieldPhillip W. WilliamsBill HoltzclawPaul BussmanDick BrewbakerShadrack McGillGreg J. ReedJimmy HolleyScott BeasonRusty GloverDel MarshJ.T. WaggonerGerald H. AllenTom Whatley

Session

Regular Session 2011

Title

Income tax, credit to certain manufacturing or telecommunication facilities for construction, upgrading, or expansion of existing facilities and equipment, and retraining of employees

Summary

SB150 would give tax credits to employers for upgrading or expanding manufacturing or telecom facilities in Alabama and for retraining their workers.

What This Bill Does

It creates two main tax credits: a sales and use tax credit equal to 5% of the cost of qualified investment property for new or expanded facilities (8% for certain recycling or pollution-related equipment), and an income tax credit for approved employer-provided or employer-sponsored retraining programs. The investment credit applies to investments made in the previous three years by existing facilities, with a minimum $50,000 cost and rules about leasing and depreciation. The retraining credit rewards employers for training employees who complete approved programs, with per-employee and annual caps and a 10-year carry-forward, plus certification and reporting requirements. State agencies would issue the detailed rules to run these credits, and the act becomes effective a few months after passage.

Who It Affects

• Existing manufacturing, shipping/receiving, or telecommunications facilities and their Alabama-based employers, who could receive sales tax credits for qualified investments and may claim retraining-based income tax credits.
• Employees who complete approved retraining programs, as their training enables their employers to claim retraining credits (subject to certification and reporting).

Key Provisions

• Five percent Alabama sales/use tax credit on the cost of qualified investment property purchased in the year; eight percent credit for recycling machinery/equipment, recycling facilities, pollution control or prevention machinery/equipment, or related facilities.
• Qualified investment property must be purchased after January 1, 2012; the investment year must have aggregate cost of at least $50,000; in the initial year, the project description must show the $50,000+ threshold; leases of five years or longer can qualify the lessee for the credit; the credit does not affect depreciation and cannot cause a loss of jobs at the location.
• The credit for investment property is claimed for the tax year after the investment year and requires an accompanying schedule detailing project description, amounts, and prior credits/investments.
• Retraining credits: employers may receive additional credits for approved retraining that enhances employees' skills; retraining must be employer-provided or employer-sponsored and certified by the Alabama Technology Network.
• Credit amounts for retraining: up to one-half of retraining costs per full-time employee, or $500 per full-time employee, whichever is less; total per employee cannot exceed $1,250 per year for employees completing multiple programs; no credit if the employee reimburses the cost.
• Total retraining credits cannot exceed 50% of the taxpayer's income tax liability for the year; credits can be carried forward up to 10 years.
• Employers must certify employee details and retraining results to the Department of Revenue; the department will adopt rules and coordinate with the Alabama Technology Network and the Department of Industrial Relations to ensure proper grant of credits.
• The Alabama Technology Network will establish standards for retraining programs (hours, courses, instructors, certification, and evaluation).
• The Department of Industrial Relations will promulgate rules defining eligible facilities and qualified investment property; the act becomes law on the first day of the third month after passage.

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