SB50 Alabama 2011 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsor

Phillip W. Williams

Session

Regular Session 2011

Title

Businesses, certain companies that create jobs, tax incentives authorized, requirements and standards for qualification

Summary

SB50 creates a comprehensive system of Alabama tax credits to encourage job creation, including credits for various types of facilities, infrastructure projects, and targeted worker hiring, with county-based credit tiers and pass-through provisions for certain business structures.

What This Bill Does

It authorizes annual job tax credits for specific facility types (manufacturing, tourism, processing, warehousing, distribution, R&D, technology-intensive, corporate offices, qualifying service-related facilities, and extraordinary retail establishments) based on new full-time jobs created. It establishes a county-tier system (distressed to developed) to determine credit levels and provides special increases for counties with military installations or federal facilities. It also adds separate infrastructure and work opportunity credits, allows credits to be carried forward up to 15 years, and permits transfer or assignment of credits in mergers or asset transfers; the credits can flow to S corporations or pass through to owners. The act is effective immediately upon passage.

Who It Affects

• Employers/taxpayers operating qualifying facilities in Alabama (manufacturing, tourism, processing, warehousing, distribution, R&D, technology-intensive, corporate offices, or service-related facilities) who hire new full-time staff and may claim job credits.
• Counties and their residents, with county tiers determining credit amounts, and workers who may benefit from targeted hiring credits (including welfare recipients, disabled veterans, ex-felons, SSI recipients, and certain veterans) and infrastructure or wage-based incentives.

Key Provisions

• Defines eligible facility types and terms (e.g., manufacturing, tourism, processing, warehousing, distribution, research and development, technology-intensive, corporate offices, qualifying service-related facility, and extraordinary retail establishment) and what counts as a full-time job.
• Creates a county designation system (distressed, least developed, underdeveloped, moderately developed, developed) to determine credit tiers, with annual updates and special increases for counties near military installations or federal facilities.
• Establishes per-job credit amounts by county tier (distressed $8,000; least developed $4,500; underdeveloped $3,500; moderately developed $2,500; developed $1,500) and credits run for five years after job creation, subject to maintaining minimum job levels; credits may be carried forward 15 years and, in some cases, transferred after mergers or asset transfers.
• Imposes a per-employee annual credit cap (generally $5,000 per employee per year; higher or different caps may apply in distressed counties for certain credits).
• Institutes an infrastructure credit allowing 50% of eligible infrastructure costs (up to $10,000 per project per year), with carryforward up to $30,000 and rules for cost allocation when multiple beneficiaries are involved; credit can be claimed before project dedication with a signed commitment from a approving entity.
• Provides a Work Opportunity Tax Credit (Section 5) offering wage-based credits for hiring certain groups (e.g., welfare recipients, disabled veterans, ex-felons, SSI recipients, veterans with unemployment) at 20% of monthly wages for the first year, 15% for the second year, and 10% for the third year, plus an additional $175 per month for hires in distressed or least developed counties for the first 24 months; health insurance requirements apply for eligibility and credits are subject to certification timelines.
• Allows credits earned by pass-through entities (S corporations, partnerships, LLCs taxed as partnerships) to be allocated to owners proportionally, with entity-level credit handling and carryover rules; credits can be transferred with qualifying asset transfers.
• Includes a certification/verification process for eligibility, with rules for reporting, regulatory implementation, and immediate effectiveness upon passage and approval.
• Provides for credits related to significant capital investments (e.g., up to five-year determinations or accelerated treatment for large site investments) and requires rules for certain special cases (e.g., road removals from public systems affecting credits).

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

Subjects

Business and Commerce