SB373 Alabama 2011 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

Bryan TaylorClay ScofieldPhillip W. WilliamsBill HoltzclawPaul BussmanDick BrewbakerVivian Davis FiguresScott BeasonArthur OrrRoger Bedford, Jr.Rusty GloverRodger SmithermanTrip PittmanBen H. BrooksDel MarshWilliam “Bill” M. BeasleyMark Slade Blackwell

Session

Regular Session 2011

Title

Economic development, tax incentives authorized to certain companies and educational institutions for locating new or expanding business in state, or a retention project, capital investment and job requirements, Alabama Development Office and Revenue Department to recommend to Governor, Industrial Development Authority to approve project for incentive (2011-20540)

Summary

SB373 would let Alabama companies and educational institutions receive state income tax withholding incentives for qualifying projects, funded by withheld wages from eligible employees, with approval from state authorities.

What This Bill Does

The Alabama Development Office, Department of Revenue, and Governor review applications and recommend approved entities to the State Industrial Development Authority, which makes the final decision. Eligible projects can receive withholding incentives ranging from 1% to 90% for new or expansion projects, and 1% to 75% for retention projects, based on the amount of state income taxes withheld from eligible employees. The total incentives plus any capital credits cannot exceed 100% of the project’s capital costs, and the incentives can last up to 20 years. Employees get a personal state tax credit equal to the amount of withholding incentives their employer retains, and the program is designed to be revenue-neutral for the state, with quarterly reporting and possible audits to ensure compliance.

Who It Affects

• Approved entities (companies and educational institutions) undertaking qualifying projects, who may receive withholding incentives based on a qualifying project agreement and project capital costs.
• Eligible employees at those projects, who receive a personal state income tax credit equal to the withholding incentives retained by their employer.

Key Provisions

• Withholding incentives range from 1% to 90% for new or expansion projects, and 1% to 75% for retention projects, of the state income taxes withheld from eligible employees, with the total not exceeding 100% of the capital costs; the incentive period can last up to 20 years.
• Final approval is given by the State Industrial Development Authority after recommendations from the ADO Director, the Commissioner of Revenue, and the Governor; a qualifying project agreement is required, and the program includes quarterly reporting and audits and is intended to be revenue-neutral for the state.

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

Subjects

Economic Development