HB164 Alabama 2013 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2013

Title

Economic Development, tax increment districts, municipalities authorized to form, Major 21st Century Manufacturing Zone Act for certain manufacturing purposes, improvements funded through tax increment financing, Secs. 11-99-1, 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-8 am'd.

Summary

HB164 would let municipalities designate Major 21st Century Manufacturing Zones of at least 250 contiguous acres and use tax increment financing to fund manufacturing site development and related infrastructure.

What This Bill Does

Creates a new designation called Major 21st Century Manufacturing Zone for large areas within a municipality that are suitable for automotive, aviation, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical manufacturing facilities, with an anticipated minimum capital expenditure of $100 million. Projects in these zones can be financed using ad valorem tax increments to fund public infrastructure, building improvements, and certain private enhancements as described in project plans. The bill also amends existing tax increment district laws to authorize these zones, sets eligibility criteria, and outlines planning, funding, and district duration rules, along with incentives for qualifying manufacturing projects that commit to develop or expand within the zone.

Who It Affects

• Municipalities and counties that designate and manage Major 21st Century Manufacturing Zones and oversee the related tax increment financing.
• Manufacturers and other developers planning to locate or expand within a designated zone who would receive incentives and access to financing for site development, infrastructure, and facilities.

Key Provisions

• Major 21st Century Manufacturing Zone defined as an area aggregating at least 250 contiguous acres, located within a municipality, suitable for automotive, automotive-industry related, aviation, aviation-industry related, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, or biomedical manufacturing facilities, with at least $100 million in anticipated capital expenditure.
• Projects within the zone may be financed in whole or in part with ad valorem tax increments to fund public infrastructure improvements, capital improvements to existing facilities, and construction or redevelopment of buildings and structures, including private improvements as outlined in project plans.
• The bill amends several sections of Alabama law (11-99-1, 11-99-2, 11-99-4, 11-99-5, 11-99-6, 11-99-8) to authorize the Major 21st Century Manufacturing Zone concept, the use of tax increment financing, and the inclusion of capital and public infrastructure within zones.
• District processes include public hearings, notices to deferred tax recipients, adoption of district boundaries and duration limits (up to 30 years for blighted/distressed areas; up to 35 years for enhanced use lease areas or Major 21st Century Manufacturing Zones), and the preparation of a detailed project plan.
• Tax increment obligations may be issued to fund project costs, with funds collected from tax increments placed in a tax increment fund and used to reimburse costs or satisfy obligations, and security options such as liens or pledges of the public entity’s full faith and credit are permitted.

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

Subjects

Economic Development