HB58 Alabama 2015 Session

This bill would enact the Alabama Jobs Act, to authorize and provide for incentives to certain businesses that create new jobs in Alabama. The incentives would require a project agreement with the state and would only be available upon a determination that the economic benefits of the incentives would be more than the cost of the incentives

The incentives created by this act would include a jobs credit for qualifying business projects that create new jobs in an amount of percent of the company’s previous year’s wages paid to the new employees, and an investment credit of 1.5 percent of an eligible capital investment for a period of 10 years

The bill would repeal various incentives currently offered to companies, including the capital credit. The bill would require clawbacks

The bill would only allow the incentives to be offered to companies meeting certain criteria. The bill would also establish an advisory committee on economic incentives

To enact the Alabama Jobs Act; to authorize and provide for a jobs credit incentive and an investment credit incentive to certain businesses for approved projects that create new jobs in Alabama; to provide that the incentives would only be available following the execution of a project agreement and a determination that the economic benefits of the project would exceed the cost of the incentives to the state; to allow the jobs credit for 10 years in an amount of percent of the previous year’s annual wages for eligible employees; to apply the jobs credit against the utility gross receipts and utility service use taxes; to provide that the jobs credit could be refundable during the incentive period; to provide that the jobs credit may be claimed as a credit against utility taxes paid with a carryforward for earned but unused amounts; to allow the investment credit in an amount of 1.5 percent of a qualified capital investment annually, for a period of 10 years; to apply the investment credit against the income tax, estimated income taxes, the financial institution excise tax, or the insurance premium tax, with additional offsets of utility gross receipts and utility service use taxes; to provide that the investment credit may be claimed as a credit against taxes paid with a carryforward for earned but unused amounts; to permit special allocations of investment credits; to make transferable the first three years of the investment credit, in certain limited circumstances; to provide for the distribution of the financial institution excise, insurance premium, and utility taxes when a company claims the jobs credit, the investment credit, or both; to make the Jobs Act Incentives available only for projects that fall within certain designated activities, that involve certain minimum new job levels, and that meet certain other standards; to require the Secretary of Commerce and Governor to make certain findings before approving a company to receive incentives; to require a project agreement; to allow the Governor to decrease the amounts and durations of the Jobs Act Incentives to ensure that the net economic benefits of the qualifying project would be positive; to provide for proof that incentives are due to be granted; to provide for the promulgation of forms for information to be submitted to a department of state government, and that such submissions shall be treated as tax returns; to provide for audits of companies claiming the Jobs Act Incentives; to require the clawback of incentives in certain cases; to create a permanent Joint Legislative Advisory Committee on Economic Incentives; to provide for the powers of such committee; to provide for the sunset of the act; to make legislative findings; to provide for the promulgation of regulations; to provide that the incentives shall not be considered securities; to provide that this act shall not constitute a guarantee by the state of company debt nor the lending of the credit of the state to any company; to prohibit the adverse construction of the provisions of the act; to provide that no company shall have any right to incentives that are granted absent strict compliance with this act; to provide that no cause of action shall exist for the denial of any benefit under this act; to create a new Article 16 of Chapter 18 of Title 40, Code of Alabama 1975; to amend Sections 40-21-87 and 40-21-107, Code of Alabama 1975; to repeal Articles 7, 7A and 9 of Chapter 18 of Title 40, Code of Alabama 1975, for new projects; to provide for a transition from prior incentives; to allow for certain legislative appropriations in the event a portion of the act is held to be invalid; to provide for the severability of invalid provisions; to provide for the repeal of conflicting laws; to provide for an effective date.