SB158 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Trip Pittman
Republican
Session: Regular Session 2011
Title: Municipalities, neighborhood infrastructure authorities, establishment by homeowners and business owners authorized, to manage and coordinate financing for neighborhood projects, tax credits, Neighborhood Infrastructure Incentive Plan Act (2011-20524)
Summary: SB158 creates Neighborhood Infrastructure Authorities that homeowners and business owners can form to finance and manage local neighborhood projects through voluntary assessments, with a 10% income tax credit for the assessments up to $1,000 per year for up to 10 years.
What This Bill Does
It allows a municipality to authorize the creation of a Local Neighborhood Infrastructure Authority to oversee and fund neighborhood projects using voluntary assessments from property owners and businesses. The authority can plan, acquire, construct, and operate projects like roads, sidewalks, sewers, and utilities, but cannot own electric, telecom, or similar systems; funding comes from assessments and projects should be competitively bid. Homeowners and businesses within the authority’s boundaries may be assessed, subject to an 80% petition threshold, and the municipality appoints the board. The act provides a 10% income tax credit for the assessment payments (up to $1,000 per year for up to 10 years) starting in 2012, and it includes provisions for excess funds, dissolution, and eventual dedication of completed facilities to the city. The act also expires in 2015 unless extended by law, with existing authorities allowed to complete projects before dissolution.

Who It Affects
Homeowners and business owners within proposed or formed neighborhood infrastructure authorities: they would pay voluntary assessments to fund local projects and may receive a 10% income tax credit (up to $1,000 per year for up to 10 years).
Municipalities (cities): they would authorize the creation of authorities, appoint board members, review petitions, oversee formation and dissolution, and formally accept dedication of completed facilities.

Key Provisions
Creates Local Neighborhood Infrastructure Authorities in municipalities to manage, coordinate, and collect voluntary assessments for neighborhood revitalization projects.
Formation requires petition by at least 80% of affected property owners; municipality approves formation and appoints a board; boundaries must be contiguous within the municipality.
Authorities have powers to enter contracts, acquire, construct, and operate projects, and to contract with property owners for improvements; projects must be competitively bid and may not involve generation or distribution of electric power, cable, or telecom services.
Funding of projects comes from assessments; no public funds are used; excess funds are returned equitably or per board bylaws; municipalities must accept dedication of completed facilities.
Immunity provisions shield authorities and board members similar to municipalities, with liability limits.
Tax credit: 10% of the assessment paid, up to $1,000 per tax year, for up to 10 consecutive tax years, starting in 2012.
Automatic expiration of the act on December 31, 2015, unless extended; existing authorities can continue until all projects are completed and dissolution occurs.

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