SB223 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Del Marsh
Republican
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.
Summary: SB223 would expand and extend tax abatements for data processing centers in Alabama to attract and retain these facilities.
What This Bill Does
It allows local governments to grant abatements of certain ad valorem taxes and construction related transaction taxes for data processing centers for up to 30 years, and it would also cover taxes on computer software used in the centers, provided minimum capital investment is met. It lowers employment thresholds so more centers can qualify. It links these abatements with the state's capital credit program, updating definitions and eligibility rules to include data processing centers and related activities. It also clarifies which public authorities can participate and how abatements are approved and applied.

Who It Affects
Data processing centers and their private users/owners would be eligible for longer and broader tax abatements, including software taxes, if they meet minimum capital investment and employment requirements.
Local governments (counties, municipalities, and public industrial authorities) would gain authority to grant and administer these abatements, including setting terms via resolutions and ensuring eligibility criteria are met.

Key Provisions
Extend the maximum abatement period for noneducational ad valorem taxes and construction related transaction taxes for data processing centers to up to 30 years, and include taxes paid on computer software used in the center.
Lower employment thresholds so more data processing centers may qualify, with minimum capital investment requirements remaining in place.
Allow abatements of noneducational ad valorem taxes, construction related transaction taxes, mortgage and recording taxes, or payments in lieu thereof for private use industrial property associated with data processing centers, including real and personal property and related infrastructure such as software, cooling, and power systems.
Permit abatements to apply to various ownership structures (private users, utilities, public authorities) and require approvals by the governing bodies of counties or municipalities, often via resolutions or inducement agreements.
Integrate with the Alabama Capital Credit program (40-18-193) by establishing employment and wage requirements for qualifying projects and detailing how capital credits can be allocated across tax years, with compliance rules and potential forfeitures if requirements are not met.

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