HB511 Alabama 2016 Session

Summary

Primary Sponsor

Nathaniel LedbetterRepresentative

Republican

Session

Regular Session 2016

Title

Taxation, small business formed after October 1, 2016, ad valorem tax abatement, Alabama New Small Business Employer Ad Valorem Tax Abatement Act

Summary

HB511 would create a two-year ad valorem tax exemption for eligible new Alabama small businesses formed after October 1, 2016.

What This Bill Does

If passed, the bill would establish the Alabama New Small Business Employer Ad Valorem Tax Abatement Act. Eligible businesses would get an exemption from all state and local ad valorem taxes on their property for the first two tax years after they qualify, but only after applying to and being approved by the Alabama Department of Revenue. The exemption cannot reduce tax liability below zero and it is not transferable or refundable. The department can set rules to administer the program, and conflicting laws would be repealed as needed.

Who It Affects

• Alabama new small business employers formed after October 1, 2016 with 50 or fewer employees, headquartered in Alabama, that qualify for the tax abatement.
• State and local governments that collect ad valorem taxes on business property would experience potential tax revenue reductions for qualifying properties during the two-year period; the Alabama Department of Revenue would administer and approve the abatement.

Key Provisions

• Definition of Alabama new small business employer: formed after October 1, 2016, headquartered or principal place of business in Alabama, with 50 or fewer employees in the tax year the abatement is claimed.
• Abatement details: two-year abatement of all state and local ad valorem taxes on the property of qualifying businesses, contingent on applying to and being approved by the Department of Revenue; cannot reduce liability below zero; not transferable or refundable.
• Administration: the Department of Revenue may adopt rules to implement and administer the act.
• Effective date and repeal: the act becomes effective October 1, 2016, and inconsistent laws are repealed.

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