HB304 Alabama 2015 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2015

Title

Innovation Act, established, tax credits for qualified research expenses, authorized under certain conditions, tax credits authorized to offset certain taxes under certain conditions, to further provide for the allocation and transferability of certain tax credits under certain conditions, Sec. 40-18-390 added

Description

Under existing law, there are no economic incentives or tax credits extended to Alabama businesses for qualified research expenses incurred by Alabama companies that spend funds and resources in-house, or pay Alabama research companies to conduct qualified research for new or improved products or services.

This bill would establish the Alabama Innovation Act that would provide for a research and development tax credit to certain Alabama companies modeled on the federal research and development tax credit. The credit would be 25 percent of new research at an Alabama research entity, and 5 percent for other new research conducted in Alabama. The credit could be taken against the income tax or the financial institution excise tax.

This bill would limit the Alabama Innovation tax credits to no more than $10 million of credits per year, and no eligible company or business could claim more than $2 million of credits. The credits would be claimed on a first-come, first-served basis.

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Subjects

Taxation