SB511 Alabama 2012 Session

Summary

Primary Sponsor

Jimmy Holley

Republican

Session

Regular Session 2012

Title

Economic Development, tax incentives for certain qualifying projects developing or expanding in state, job creation, retention component, Alabama Development Office and Finance Director to recommend to Governor to approve the project, Alabama Job Creation and Retention Act

Summary

SB511 creates a state program that offers wage- and job-creation incentives to Alabama companies for qualifying projects, with Governor approval and agency oversight.

What This Bill Does

It sets up a framework for awarding incentives to qualifying projects based on the number of new jobs and wages, up to 100% of capital costs and for up to 20 years total. The Governor, after recommendations from the Alabama Development Office and the Director of Finance, must approve each approved company and its qualifying project agreement. The program includes minimum job and investment requirements, quarterly reporting, possible repayment if targets aren’t met, and a unemployment-rate threshold of over 6% to grant incentives, with incentives usable as offsets to certain state taxes but not education-related ad valorem taxes.

Who It Affects

• Approved companies (and related companies) undertaking qualifying projects in Alabama, who may receive wage- and job-creation incentives and must meet minimum job and capital investment requirements.
• The State of Alabama and its taxpayers (including the Education Trust Fund), along with the Alabama Development Office, Department of Revenue, and Department of Finance, which administer and oversee the program and its effects on revenue.

Key Provisions

• Establishes the Alabama Job Creation Act of 2012 to provide incentives based on jobs created and wages paid for qualifying projects undertaken by Alabama companies.
• Defines key terms such as APPROVED COMPANY, QUALIFYING PROJECT, CAPITAL COSTS, ELIGIBLE EMPLOYEES, INCENTIVE PERIOD, and WAGE AND JOB CREATION INCENTIVE, among others.
• Wage and job creation incentives: per new eligible employee, $500 if wages exceed county average by 10%, $750 by 20%, or $1,000 by 30%.
• Incentives can offset state taxes (corporate income, utility gross receipts, sales/use) but not ad valorem taxes dedicated to education; total incentives cannot exceed 100% of the qualifying project’s capital costs; incentive period capped at 20 years total (10 years per project).
• Approvals require the Governor’s written consent after recommendations from the ADO Director and the Director of Finance; no incentives without Governor approval and a qualifying project agreement.
• Projects must maintain minimum jobs for the incentive period; failure to meet targets may trigger repayment; quarterly reporting and potential audits to verify eligibility and compliance.
• Unemployment rate threshold: incentives are available only when the state unemployment rate is above 6% on January 1 of the year the incentives would be granted; program requires reauthorization every five years after 2019 for new applications.

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