HB311 Alabama 2014 Session

Summary

Primary Sponsor

Greg Burdine

Democrat

Co-Sponsors

Barbara Bigsby BoydMerika ColemanMarcel BlackThomas JacksonRod ScottDarrio MeltonArtis McCampbell

Session

Regular Session 2014

Title

Economic development, tax incentive, new and expanding companies, employment, required to maintain levels for five years or repay incentive, Labor Department to verify, Revenue Department, annual report to Legislature of number of jobs created, Alabama Job Creation and Taxpayer Protection Act

Summary

HB311 would require written contracts for state tax incentives with specific job commitments, require companies to maintain those jobs for at least five years, and allow the state to reclaim incentives if commitments are not kept.

What This Bill Does

If passed, incentives or subsidies for building or expanding in Alabama after the act’s effective date must be tied to a written contract detailing job commitments. The contract must require the company to operate in Alabama and maintain the committed employment levels for at least five years after project completion. For five consecutive tax years, the company must certify jobs created, with verification by the Department of Labor and possible audits by the Department of Revenue; if commitments aren’t met, the state can seek repayment of incentives for the affected years. The Department of Revenue must annually report on projects, jobs created and committed, and total incentives claimed, and the act allows rulemaking and becomes effective immediately after enactment.

Who It Affects

• Companies that receive or apply for tax incentives or subsidies to build or expand in Alabama, who must sign contracts outlining job commitments and may have incentives repaid if they don’t meet those commitments.
• State agencies (Department of Revenue and Department of Labor) responsible for verifying employment data, auditing compliance, enforcing repayment, and reporting to the Legislature and public.

Key Provisions

• After the act’s effective date, incentives or subsidies must be under a written contract outlining specific job commitments by the company.
• The contract must specify annual job commitments for at least five years after the project is completed and require maintaining the committed employment levels.
• For five consecutive tax years after project completion, the company must certify actual jobs created to the Department of Revenue, with verification by the Department of Labor; the Revenue Department may request additional information and audit.
• If the company fails to maintain the required employment levels in any of the five years, the state may seek repayment of the incentive for those years, pro rata based on jobs created versus committed.
• The Department of Revenue must annually report to the Legislature, Legislative Fiscal Office, and the public on projects, including jobs created, jobs committed, and total incentives claimed.
• The Department of Revenue will adopt rules and regulations to implement the act.
• The act becomes effective immediately after passage and approval by the Governor (or becoming law otherwise).

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