HB34 Alabama 2016 Session

Summary

Primary Sponsor

Mac McCutcheon

Republican

Session

Regular Session 2016

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 40-18-416, inclusive, added

Summary

HB34 creates the Alabama Renewal Act, establishing port-related and Growing Alabama tax credits and a new commission to oversee them.

What This Bill Does

It creates a Port Credit program for port facility users who increase cargo volume above a base level, with credits calculated per TEU, ton, or kilogram and capped overall and yearly. It also creates the Growing Alabama Credit for donations to local economic development organizations, with annual caps, donor requirements, and reservations for targeted counties. A Renewal of Alabama Commission is established to administer credits, allocate funds, and report on results, with rules and oversight from state departments; the act also provides site-development funding mechanisms for local groups and is repealed after FY2020, with credits already awarded remaining in effect.

Who It Affects

• Port facility users (manufacturers, warehousing, or distribution companies using Alabama port facilities) who move cargo above their base volume and may receive port credits to offset state taxes, subject to thresholds and caps.
• Local economic development organizations (Alabama nonprofit entities or similar groups) that may receive Growing Alabama Credits funded by donor contributions, subject to rules, reporting, and allocation limits.

Key Provisions

• Establishes Port Credit under Article 18 with definitions (base cargo volume, cargo volume, port facility, etc.), an application process, and a life-of-program cap of $12,000,000 and an annual cap of $5,000,000.
• Credits are calculated as $50 per TEU, $3 per net ton, or $0.04 per kilogram times (annual cargo volume minus base cargo volume) and require port users to ship more than 105% of prior year volume plus minimums (10 TEUs, 75 net tons, or 15,000 kg for air cargo).
• Credits may offset the port user’s state tax liability or estimated payments (not below zero), are carryable for up to five years, and can be transferred in certain asset-transfer situations; credits cannot reduce estimated payments before Oct 1, 2016 and are subject to the commission’s rules.
• Allocates funds for economic development projects via local organizations: up to $3,000,000 per project, requires $20,000,000 investment and 75 new jobs, cannot be awarded for more than three years, and includes specific per-TEU/ton/kg credit limits; allocations require Governor approval and Commission consent, with recapture provisions if obligations aren’t met.
• Growing Alabama Credit allows a credit to taxpayers for donations to approved local economic development organizations, limited to 50% of tax liability, with annual caps of $5,000,000 (2016) and $10,000,000 (2017–2020), and at least 25% reserved for targeted counties; credits are non-transferable, cannot be claimed as deductions elsewhere, and must be claimed via an online system.
• The Renewal of Alabama Commission oversees program administration, ensures compliance, publishes annual reports, and can adopt rules; the Department of Commerce and Department of Revenue support administration and data sharing subject to confidentiality.
• The act repeals after the close of FY2020, but credits awarded for 2020 and prior years remain in effect.

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