HB424 Alabama 2019 Session

Summary

Primary Sponsor

Joe Lovvorn Representative

Republican

Session

Regular Session 2019

Title

Taxation, Alabama Innovation Act, tax credit for qualified research expenses, provided, Secs. 40-18-470 to 40-18-475, inclusive, added.

Description

Under existing law, there are no economic incentives or tax credits extended to Alabama businesses for qualified research expenses incurred by Alabama companies that spend funds and resources in-house or pay Alabama research companies to conduct qualified research for new or improved products or services.

This bill would establish the Alabama Innovation Act that would provide for a research and development tax credit to certain Alabama companies modeled after the federal research and development tax credit. The credit would be based on in-house research and contract research expenses conducted in Alabama and consortium research expenses for qualified research conducted in Alabama. The credit could be taken against the income tax or the financial institution excise tax.

This bill would limit the Alabama Innovation tax credits to no more than $25 million of credits in any one calendar year; and no eligible company or business could claim more than $2,000,000 in a single tax year. The credits would be claimed on a first-come, first-served basis.

Show more Show less

Subjects

Taxation