SB36 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

SB36 would let the Alabama Governor add $5 million to the existing $20 million annual cap on New Markets Tax Credits, making $25 million available per year for Alabama-based programs, with the extra credits allocated by executive order to Alabama-based CDEs.

What This Bill Does

It amends the annual cap to allow a $5 million supplemental allocation via executive order, limited to Alabama-based Community Development Entities (CDEs) that meet IRC Section 45D guidelines and do not need to have prior CDFI allocations. The existing process for allocating credits remains in place, and allocations are based on the scheduled utilization rather than carryforwards. The change applies to tax years beginning after December 31, 2015.

Who It Affects

• Alabama-based Community Development Entities (CDEs): eligible to receive an additional $5 million in NMDA tax credits through executive order, provided they are Alabama-based and qualify under IRC Section 45D (not required to have previously received a CDFI allocation).
• Taxpayers/investors seeking NMDA tax credits: could access more credits up to the expanded $25 million annual cap (baseline $20 million plus the $5 million added by the Governor), subject to the governor’s allocation and the existing application process.

Key Provisions

• Amends Section 41-9-219.2 to allow the Governor to award an additional $5,000,000 of tax credits via executive order, increasing the annual cap from $20,000,000 to $25,000,000 for Alabama-based NMDA activities.
• The additional $5,000,000 allocation is available only to Alabama-based Community Development Entities (CDEs) qualified under Section 45D of the Internal Revenue Code; prior CDFI allocations are not required, but qualification must follow IRC guidelines.
• The existing application process (Section 41-9-219.3) remains in effect for allocating the credits.
• Effective for all taxable years beginning after December 31, 2015; conflicts with other laws repealed; provisions are severable.

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