HB144 Alabama 2012 Session

Summary

Primary Sponsor

William Roberts

Republican

Session

Regular Session 2012

Title

Taxation, existing tax incentives expanded to include coal mining industry companies, Secs. 40-9B-3, 40-18-190 am'd

Summary

HB144 expands Alabama tax incentives to coal mining companies by extending abatements and capital credits to NAICS 2121 investments.

What This Bill Does

HB144 extends existing tax incentives to investments by coal mining companies (NAICS 2121). For these projects, capital costs used to calculate credits exclude land costs and architectural/engineering services, and a capital credit of up to 5% of the adjusted costs would be paid over 20 years with a 50% overall cap. Abatements for private use property would be limited to 50% of the related taxes. The credits and abatements would not be available for two years after the act’s effective date unless extended by the Legislature, and the Department of Revenue will annually report qualifying projects and credits claimed.

Who It Affects

• Coal mining companies investing in qualifying projects in Alabama would be eligible for capital credits (up to 5% of adjusted capital costs, paid over 20 years) and abatements for private use property, subject to caps and a two-year waiting period.
• Public authorities, counties, municipalities, and other entities that grant or administer abatements for private use industrial property would be affected by new limits (50% cap on certain taxes) and by the requirement to report annually to the Legislature and public.

Key Provisions

• Extends coal mining investments (NAICS 2121) to qualify for abatements and capital credits under 40-9B-3 and 40-18-190.
• For NAICS 2121 projects, capital costs exclude land costs (40-18-190(a)(2)(b)) and architectural/engineering costs (a(2)(d)) when calculating credits.
• Capital credit: up to 5% of adjusted capital costs, payable over 20 years against state income tax or financial institution excise tax, with a total cap of 50% of adjusted capital costs.
• Abatements for private use property are limited to 50% of the relevant non-educational ad valorem taxes, construction-related transaction taxes, and mortgage/recording taxes.
• There is a two-year sunset for NAICS 2121 credits/abatements after the act’s effective date unless extended by a joint legislative resolution.
• The Department of Revenue must annually report qualifying projects, capital costs, total credits claimed, and total taxes abated.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation