SB214 Alabama 2016 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Clay Scofield
Republican
Session: Regular Session 2016
Title: Broadband telecommunication network facilities, tax credit for percentage of investment, Sec. 40-18-371.1 added; Sec. 40-18-370 am'd.
Summary: SB214 creates a 10% nonrefundable income tax credit for private investment in new broadband telecommunications network facilities in Alabama to spur broadband infrastructure.
What This Bill Does
It provides a 10% nonrefundable income tax credit on qualified investment for new broadband network facilities in Alabama. The credit is capped at the lesser of the tax due after other credits or $750,000 per year, with any unused amount able to be carried forward for up to 14 years. Before claiming the credit, the installed equipment must receive an order from the Alabama Department of Commerce confirming it qualifies as broadband network facilities. The bill defines broadband facilities and capital investment and adds the new credit to the Alabama tax code, taking effect for tax years beginning after December 31, 2016.

Who It Affects
Private broadband investment companies building or expanding broadband network facilities in Alabama: eligible to claim a 10% credit on qualified investment, pending approval and subject to annual caps and carryforward rules.
Alabama taxpayers with income tax liability (businesses or individuals): may reduce their Alabama income tax due by the credit, within the annual cap and with the option to carry forward unused amounts.

Key Provisions
Adds a new 40-18-371.1 provision allowing a 10% nonrefundable income tax credit on qualified investment in broadband telecommunications network facilities, for tax years after 2016.
Credit is limited to the lesser of the tax due after other credits or $750,000 per year; any excess can be carried forward for up to 14 years.
Broadband telecommunications network facilities are defined to include equipment, transmission facilities, and cables capable of speeds of at least 10 Mbps download and 1 Mbps upload.
Before the credit can be claimed, the taxpayer must obtain an order from the Alabama Department of Commerce confirming that the installed equipment qualifies as broadband network facilities.
The act amends section 40-18-370 and adds section 40-18-370.1, and becomes effective for tax years beginning after December 31, 2016.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Tax Credits