SB190 Alabama 2011 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2011

Title

Freight lines and equipment companies, license tax credit for eligible expenses for maintenance, repairs, and improvements of railroad cars, authorized, Sec. 40-21-52.1 added

Summary

The bill creates a tax credit against the license tax for freight lines and equipment companies for in-state maintenance, repair, and improvement of railroad cars, equal to 100% of eligible expenses, with certain limits and administration rules.

What This Bill Does

It adds a new provision that allows freight lines and equipment companies to claim a credit against their license tax for eligible in-state maintenance, repair, and improvement costs of railroad cars. Eligible expenses include labor, materials, overhead, and payments to in-state third parties. The credit is 100% of eligible expenses from the previous year, but cannot exceed the company’s license tax liability for the year; the Department of Revenue would set up rules and forms to claim the credit. The measure takes effect immediately after passage and approval.

Who It Affects

• Freight line and equipment companies: would receive a credit against their license tax equal to 100% of eligible expenses for maintaining, repairing, or improving railroad cars, limited by their annual license tax liability.
• In-state maintenance providers (labor, materials, overhead, and third-party vendors): would be the entities performing the eligible maintenance work and thus benefit from the increased activity and eligibility of payments that count toward the credit.

Key Provisions

• Eligible expenses are in-state costs to maintain, repair, or improve a railroad car, including labor, materials, overhead, and payments to in-state third parties.
• The license tax credit equals 100% of eligible expenses incurred in the immediately preceding taxable year.
• The credit cannot exceed the taxpayer's license tax liability for the year in which the credit is claimed.
• The Commissioner of the Department of Revenue will issue rules and procedures for documenting and claiming the credit.
• The act becomes effective immediately after passage and approval by the Governor.

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

Subjects

Taxation