HB59 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Paul W. LeeRepresentative
Republican
Session: Regular Session 2015
Title: Economic development, tax incentives for reinvestment in existing business, abatement of noneducational ad valorem taxes and sales and use taxes, time period of ad valorem tax abatement extended to 20 years, AIDT to perform training, utility taxes distributed, Alabama Reinvestment and Abatements Act, Secs. 40-9G-1, 40-9G-2 added; Secs. 40-9B-3, 40-9B-5 am'd.
Summary: HB59 creates the Alabama Reinvestment and Abatements Act to offer tax abatements and utility tax refunds to encourage existing businesses to reinvest in Alabama, with new rules and oversight for how incentives are granted.
What This Bill Does
It establishes a new Chapter 9G in Title 40 to provide abatements of construction-related transaction taxes and state and local ad valorem taxes for qualifying projects, plus up to a 10-year utility tax refund and AIDT employee training. It sets criteria for what counts as an approved activity and a qualifying project, and requires strict compliance with forms, audits, and oversight by state agencies. Abatements can last up to 20 years for ad valorem taxes, with special data processing center rules allowing up to 10/20/30 years based on investment, and state taxes abated only with Governor approval; abatements end if the property stops being used for its intended purpose for 6 months. It also requires local consent (municipal for municipal taxes, county for county taxes) and outlines how tax proceeds and refunds are distributed and regulated.

Who It Affects
Private companies or private users planning qualifying projects that invest in Alabama; they could receive abatements of state and local ad valorem taxes and construction-related transaction taxes, plus utility tax refunds and access to AIDT training, subject to compliance and approvals.
Municipalities, counties, public industrial authorities, and the Governor who grant abatements and determine consent for tax reductions, oversee approval processes, share in tax proceeds from abatements, and implement the program under the act.

Key Provisions
Creates a new Chapter 9G of Title 40, defining terms like approved activity, qualifying project, private user, and industrial or research enterprise to govern incentives.
Authorizes abatements of construction-related transaction taxes and ad valorem taxes for qualifying projects; requires local consent (county/municipality) and Governor consent for state taxes; allows public authorities to grant consent on behalf of local governments.
Sets maximum abatement periods up to 20 years for ad valorem and local noneducational taxes, with special data processing center rules allowing 10/20/30 year periods based on investment; abatements end if the property ceases to be used for its intended purpose for 6 months.
Provides a 10-year utility tax refund calculated as taxes paid minus the prior three-year average, with details on certification and distribution to the company; allows transfer of the refund under certain conditions.
Authorizes AIDT training for employees of qualifying projects; requires forms and annual certifications; imposes audits and penalties; emphasizes strict compliance and that no right to incentives exists without it.
Updates NAICS codes, outlines filing procedures, and requires promulgation of regulations; includes severability, repeal of conflicting laws, and a 90-day effective date 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: Economic Development