SB167 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Tom WhatleyGerald O. DialClay ScofieldPhillip W. WilliamsPaul BussmanDick BrewbakerGreg J. ReedScott BeasonArthur OrrDel MarshJ.T. WaggonerMark Slade Blackwell

Session

Regular Session 2012

Title

Data processing centers locating in Alabama, certain ad valorem tax and construction related transaction tax abatements authorized, requirements, Data Processing Center Economic Incentive Enhancement Act, Secs. 40-9B-3, 40-9B-4, 40-18-193 am'd.

Summary

SB167 would extend and broaden tax abatements for data processing centers in Alabama to up to 30 years, include software taxes in the relief, and lower the job thresholds to qualify, with local governments authorized to grant the abatements.

What This Bill Does

It allows counties, municipalities, and public industrial authorities to abate certain taxes for private users of data processing centers for up to 30 years, including taxes on computer software used in the center. It expands who and what counts as a data processing center and lowers employment thresholds so more centers can qualify. It defines the terms and sets conditions for the maximum exemption period based on ownership and investment, and it requires local approvals to grant specific abatements.

Who It Affects

• Data processing centers and their private owners/users would be eligible to receive substantial tax relief—covering noneducational ad valorem taxes, construction taxes, mortgage/recording taxes, and payments in lieu of these taxes—for property used in the center, including software and related infrastructure, if they meet investment and employment requirements.
• Local governments (counties, municipalities) and public authorities would gain the authority to grant these abatements and would manage approvals, resolutions, and compliance under the new rules.

Key Provisions

• Extends the maximum abatement period for data processing centers to up to 30 years for noneducational ad valorem taxes and construction related taxes, subject to minimum capital investment requirements.
• Includes taxes paid on computer software used in a data processing center in the abatement.
• Lowers employment thresholds to allow more data processing centers to qualify.
• Allows governing bodies of municipalities, counties, and public industrial authorities to grant abatements to private users of data processing centers, with specific ownership and investment conditions and maximum periods.
• Abates noneducational ad valorem taxes, construction related taxes, mortgage and recording taxes, or payments in lieu thereof, for private use industrial property and for property comprising the data processing center.
• For certain ownership/enterprise types (utilities, Chapter 6/Chapter 50A entities, and specific energy projects), abatement levels can be 100% of applicable taxes and/or 100% of construction related taxes, with some exemptions from other procedural requirements.
• Data processing centers are included within the broader category of industrial or research enterprises eligible for abatements.
• Local approval is required for abatements of certain taxes, taking effect only upon adoption of a resolution by the local governing body.
• Section 40-18-193 establishes a capital credits program requiring minimum job creation and wage levels, with compliance rules, annual reporting, possible forfeiture for noncompliance, and credits allocated to the tax years of the recipient.

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

Subjects

Taxation