HB416 Alabama 2015 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2015

Title

Alabama Renewal Act, certain tax credits for the state's port facilities and other tax credits, authorized, Secs. 40-18-400 to 40-18-403, inclusive, 40-18-410 to 40-18-415, inclusive, added

Summary

HB416 creates two new tax-credit programs—the Port Credit and the Growing Alabama Credit—to encourage port activity and private funding of economic development in Alabama.

What This Bill Does

Establishes a Port Credit for port facility users, with a yearly cap of $8 million, calculated as $50 per TEU or $3.00 per net ton times cargo volume above the user’s base cargo volume; allows the credit to offset Alabama taxes or estimated payments (after October 1, 2016 for estimated payments), and permits carryforward for up to five years; credits can be transferred to another company if substantial assets are transferred. Creates the Renewal of Alabama Commission to administer port credits, process applications, charge application fees, promulgate regulations, and annually report on fund use; compels compliance with forms and confidentiality rules. Adds the Growing Alabama Credit, funded by contributions to approved economic development organizations (EDOs); the credit is the lesser of 50% of the taxpayer’s current-year tax liability or the taxpayer’s contribution amount plus an additional allocation share, subject to yearly caps (2016: $5 million; 2017: $10 million; 2018 and later: $15 million) and allocation rules beginning with the earliest issuance times. Provides that funds must be used for designated approved activities (economic development, infrastructure, workforce, redevelopment, etc.), imposes strict controls on how contributions are handled and invested by EDOs, requires annual reporting, and allows for termination of an EDO if standards are not met.

Who It Affects

• Port facility users (manufacturers, warehouses, and distributors using Alabama port facilities) would be able to claim a port credit against their Alabama tax, subject to base vs. cargo volume calculations, caps, and transferability rules.
• Taxpayers who donate cash or property to designated economic development organizations (and the EDOS themselves) would be able to claim Growing Alabama Credits; the credits depend on their tax liability and contribution amounts, with rules governing use, transfer, and reporting to ensure funds are used for approved economic development activities.

Key Provisions

• Port Credit program created under Article 18 of Chapter 18, Title 40; cap of $8 million; calculation based on cargo volume in excess of base cargo volume; credits offset tax or estimated payments; carryforward up to five years; transfer provisions tied to asset transfers; application and certification processes; and penalties/regs as set by the commission.
• Renewal of Alabama Commission established to oversee port credits and Growing Alabama program; defined composition, duties, meetings, reporting, confidentiality, and regulatory authority; department support and annual fund-use reports; rules to prevent conflicts of interest.
• Growing Alabama Credit program established under Article 19; annual cap structure ($5M in 2016, $10M in 2017, $15M from 2018 onward); defines Approved Activities and Qualifying Purposes; contributions by taxpayers to EDOs determine credit amounts; first-day allocations and additional allocation shares rules; carryforward possibilities up to 10 years; restrictions on investment, use, and transfer of contributed funds; EDOs reporting requirements and termination rules.
• Economic Development Organizations (EDOs) must meet specified criteria (501(c)(6) status, long-standing presence, support for recruitment/retention/innovation, non-use of lobbyists while designated); credits are not transferable except in certain asset-sale scenarios; governance and financial controls emphasized to prevent private benefit; general compliance, audits, and regulatory approvals outlined.

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