HB280 Alabama 2013 Session

Summary

Primary Sponsor

Barry Mask

Republican

Session

Regular Session 2013

Title

Taxation, expanding the tax incentive reform act, industrial development property, Sec. 40-9B-3 am'd.

Summary

HB280 expands how Industrial Development Property and Major Additions are defined by allowing rebuilding and related costs to be added to capital accounts for tax abatements tied to establishing or expanding industrial or research enterprises.

What This Bill Does

It amends Section 40-9B-3 to broaden the types of costs that can be included in the capital accounts when determining an industrial development property. It adds rebuilding, reconstruction, rehabilitation, repair, and/or re-equipping costs to the definition of industrial development property and major additions, with major additions capped at the lesser of 30% of the original cost or $2 million. This helps projects qualify for ad valorem tax abatements under the program if they meet the expanded criteria.

Who It Affects

• Private owners and developers of industrial development property (including those expanding or establishing industrial or research enterprises) who could add rebuilding and related costs to their capital accounts.
• Local governments, counties, municipalities, and public authorities that grant ad valorem tax abatements for industrial development property and related projects, since qualification criteria are broadened.

Key Provisions

• Expands the definition of Industrial Development Property to include costs of rebuilding, reconstruction, rehabilitation, repairing, and/or re-equipping, which may be added to the capital account of the property.
• Defines Major Addition as the lesser of 30% of the original cost of the industrial development property or $2,000,000, and includes such additions as part of establishing or expanding an industrial or research enterprise.
• Requires that the added costs be treated as capital expenditures for tax abatement purposes (not current expenses) and applies to establishing or expanding an industrial or research enterprise.
• Maintains the existing framework for tax abatements and the related definitions and terms, while expanding the pool of qualifying property and costs.

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