SB277 Alabama 2018 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2018

Title

Taxation, income tax credit, created for businesses involved with construction relating to national border security

Summary

SB 277 creates a 10% non-refundable income tax credit for Alabama businesses involved in construction relating to national border security.

What This Bill Does

If a business has construction costs tied to national border security, it can claim a credit equal to 10% of those costs against its Alabama income tax. The credit is taken in the year the costs were incurred. The credit cannot reduce tax liability below zero and is non-refundable and non-transferable. The Department of Revenue will issue rules to implement the credit, and the act becomes effective immediately, with applicability to tax years beginning after December 31, 2018.

Who It Affects

• Businesses involved in construction relating to national border security: may claim a 10% credit on eligible construction costs against Alabama income tax, limited by not reducing tax liability below zero and by being non-refundable and non-transferable.
• Alabama Department of Revenue: must promulgate rules to implement and administer the credit.

Key Provisions

• Provides a new income tax credit for construction relating to national border security.
• Credit equals 10% of eligible construction costs for tax years after December 31, 2018.
• Credit is claimed in the year the costs are incurred.
• Credit cannot reduce tax liability below zero; it is non-refundable and non-transferable.
• Department of Revenue to promulgate rules to implement and administer the credit.
• Act becomes effective immediately upon passage and governor's approval (or as otherwise provided by law); applies to the specified tax years.

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