HB532 Alabama 2014 Session

Summary

Primary Sponsor

Paul DeMarco

Republican

Co-Sponsors

Mary Sue McClurkinAllen TreadawayDickie DrakeJim CarnsDavid StandridgeLawrence McAdoryAllen FarleyRod ScottOliver RobinsonJohn W. RogersMary MooreJack WilliamsMerika Coleman

Session

Regular Session 2014

Title

Tax exemption, Southern Research Institute exempt from certain tax

Summary

HB532 would grant a broad tax exemption to the Southern Research Institute and its property in exchange for meeting investment, employment, and education outreach targets, with a repayment plan if targets aren’t met.

What This Bill Does

It exempts the Southern Research Institute and its property from state, county, and municipal taxes, licenses, fees, and charges. In exchange, the Institute must certify investment and employment levels and report on education outreach and curriculum content to state education bodies, starting in 2018. The bill requires certification by September 30, 2018 that the Institute has invested at least $20 million in property/equipment, has 400 or more Alabama employees, and has hired a STEM outreach coordinator. If targets aren’t met, the exemptions become void on October 1, 2018 and the Institute must repay the exempted taxes in equal installments through October 1, 2028.

Who It Affects

• Southern Research Institute: would receive a tax exemption for itself and its property but must meet investment, employment, and outreach requirements and provide annual education-related reports; failure triggers repayment of exempted taxes.
• Alabama state and local governments and taxpayers: could experience reduced tax revenue from the exemption; must handle the Institute's reporting requirements and enforcement of the repayment plan, and there are restrictions limiting tax exemptions for for-profit entities related to the Institute.

Key Provisions

• Section 2: Exempts the Southern Research Institute and its real and personal property from state, county, and municipal taxes, licenses, fees, and charges of any kind.
• Section 3(a): In exchange for the exemption, the Institute must provide curricular content for the state distance learning program, hire a STEM outreach coordinator, and report annually on developments relevant to high school science, math, and health curricula.
• Section 3(b): Requires certification by September 30, 2018 that the Institute has (1) invested $20 million or more in Alabama property/equipment, (2) employed 400 or more people in Alabama, and (3) hired a STEM outreach coordinator.
• Section 3(c): If the Institute fails to meet the requirements, all exemptions become void as of October 1, 2018 and the Institute must repay exempted taxes from the exemption period in equal installments from October 1, 2018 to October 1, 2028.
• Section 4: For-profit entities leasing or owning property on SR Institute property are not exempt from sales, use, or ad valorem taxes unless otherwise allowed by specific Alabama law; for-profit entities cannot receive exemptions if their contributed property is used in their own for-profit activities.
• Section 5: Repeals conflicting laws.
• Section 6: The act becomes effective immediately after passage.

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