HB505 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Bill Poole
Republican
Session: Regular Session 2012
Title: Tax abatement incentives provided for properties damaged by tornados or storm that are disqualified, Sec. 40-9B-13 am'd; Act 2011-709, 2011 Reg. Sess., am'd
Summary: HB505 protects and extends tax abatements for private use industrial properties damaged by natural disasters (tornadoes), allowing continued eligibility and transfer to disaster replacement properties with rules on location, cost changes, and approvals.
What This Bill Does
It amends the Tornado Disaster Recovery Tax Incentive Protection Act to ensure abatements remain if a damaged property is repaired or replaced after a disaster. It defines disaster replacement property and replaced property and clarifies eligibility for abatements related to the 2011 tornado outbreaks. It sets conditions for transferring or continuing abatements when replacement properties differ in site or governing body, including cost-difference thresholds and required approvals, with retroactive effect to April 15, 2011.

Who It Affects
Private use industrial property owners/users who have or seek tax abatements on damaged or replacement property and may benefit from continued eligibility or transfer rules.
Local governing bodies (municipalities, counties, and public industrial authorities) that grant abatements and must manage approvals, transfers, and compliance when replacement property location or cost changes occur.

Key Provisions
Protects abatements for property repairs or replacements damaged in natural disasters (tornadoes) and expands applicability to transactions and property acquired before December 31, 2012 for Tornado Disaster Recovery tax abatements.
Defines terms: disaster replacement property, replaced property, and natural disaster, to specify what qualifies for continued or transferred abatements.
Existing abatements in place on April 15 or April 27, 2011 won’t be disqualified due to interruptions in qualifying activities through October 1, 2011 caused by the April 2011 tornadoes.
If disaster replacement property is at the same site within the same governing body and cost of replacement ≤ 25% more than replaced property, abatements can be transferred without new approval but require written notices and ongoing tax filing.
If disaster replacement property is in a different governing body, approval must be obtained from the new governing body under existing procedures (40-9B-5 and -6).
If replacement cost exceeds replaced property by more than 25%, approval is required for the excess portion of the abated taxes; up to 25% more can continue without new approval if no new governing body is affected.
Retroactive effective date of April 15, 2011; applies to transactions after the April 2011 tornado outbreaks; continues to apply notwithstanding other laws.
The act is severable and can be enacted without affecting other provisions; conflicting laws are repealed to the extent of conflict.

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