SB163 Alabama 2015 Session

Summary

Primary Sponsor

Jimmy Holley

Republican

Session

Regular Session 2015

Title

Tax Credits, Alabama New Markets Development Act, limitations revised, allocation of tax credits further provided for, Sec. 41-9-219.2 am'd.

Summary

Allows the Governor to increase the annual Alabama New Markets Development Act tax credit cap by up to $5 million per year through executive order, expanding the cap from $20 million to $25 million in a year.

What This Bill Does

Amends the NMDA cap rule to let the Governor, by executive order, add up to $5 million in qualified investments that generate tax credits in a given year. This means more NMDA tax credits could be issued in a year if the Governor issues such an order. The change applies to tax years beginning after December 31, 2015 and the cap calculation is based on planned use of credits rather than carryforwards.

Who It Affects

• Investors and project sponsors who use NMDA tax credits; they could be able to claim up to an additional amount of credits in years when the Governor issues an executive order increasing the cap.
• The Governor and Alabama state agencies that administer NMDA credits; they gain authority to increase the annual cap by executive order and certify credits within the expanded limit.

Key Provisions

• Base annual cap for NMDA tax credits is $20 million; Governor can authorize up to $5 million more per year via executive order, for a total of $25 million.
• Expansion applies to taxable years beginning after December 31, 2015.
• The Governor's executive-order power to increase the cap relates to 'qualified investments that can result in tax credits' under the NMDA; certification remains subject to the Act’s provisions.
• If any part of the act conflicts with other laws, conflicting laws are repealed; however, the act remains severable so other parts stay in effect if one part is invalid.

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