SB477 Alabama 2011 Session

Summary

Primary Sponsor

Del Marsh

Republican

Co-Sponsors

George M. “Marc” KeaheyPhillip W. Williams

Session

Regular Session 2011

Title

Economic development, tariff tax credits of capital investment costs for qualifying projects, job creation a qualifying factor, Tariff Credit Act (2011-21034)

Summary

SB477 creates a Tariff Credit program to offset import tariff costs for large Alabama investments that create jobs, with caps, transferability, pass-through tax treatment, and a sunset for new projects.

What This Bill Does

It establishes a tariff credit that can cover tariff costs incurred by a qualifying project, up to 20 million dollars or 25% of the project's capital costs, whichever is less, with a total program cap of 50 million dollars. Qualifying projects must have capital costs of at least 100 million dollars and create at least 100 new full-time jobs, and must meet a base wage requirement. Credits can reduce state income or corporate taxes or be transferred to another taxpayer for up to three years and are allocated to owners and beneficiaries on a pass-through basis. The bill includes an approval process, annual reporting, and enforcement provisions, and new project credits sunset after 2015 unless renewed by the Legislature.

Who It Affects

• Investing companies sponsoring qualifying projects (and their related parties) would be eligible to receive tariff credits to offset tariff costs for the project, subject to caps and employment wage requirements.
• Owners, shareholders, partners, members, beneficiaries of investing companies (and transferee taxpayers) would receive or use the tariff credits against Alabama taxes (individual or corporate) or obtain transferred credits for up to three years.

Key Provisions

• Tariff credits mechanics: qualifying projects must have at least 100 new full-time employees and capital costs of at least $100 million; tariff costs are defined by specified import duties; credit amounts are capped at $20 million per project or 25% of capital costs, whichever is less, with a total program cap of $50 million; credits can be used against state taxes or transferred to transferee taxpayers for up to three years and pass through to owners/beneficiaries.
• Administration and compliance: requires notices of intent and governor approval, annual reporting of qualifying projects and credits claimed, affidavits of eligibility and employment maintenance, possible audits and a department fee framework (up to 5% of the credit value for transfers), and a sunset for new projects after 2015 unless renewed by joint resolution.

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