HB 540

Sponsors

Session

Regular Session 2019

Title

Taxation, incentives for attraction of new and expanding business including rural areas, investment credit for income tax, financial institution excise tax, insurance premium tax, utility tax, further incentives for rural areas as defined, purchase of credits, incentives for high-tech companies, Ala. Incentives Modernization Act, Secs. 40-18-6.1, 40-18-8.1, 40-18-376.3 added; Secs. 40-18-376, 40-18-376.1, 40-18-410, 40-18-411, 40-18-412, 40-18-413, 40-18-414 am'd.

Description

This bill would create the “Alabama Incentives Modernization Act” to add new tools for the attraction and expansion of businesses in rural Alabama and high-tech companies throughout the state

For rural parts of the state, this bill would enhance the Alabama Jobs Act incentives that are available to companies locating or expanding in rural Alabama; would extend the Alabama Jobs Act to any rural project with at least five jobs; and would extend the investment credit under the Jobs Act to fifteen years. The bill would extend the benefits of being a “rural” county to any county with population less than 50,000. For all parts of the state, the bill would allow banks and insurance companies to purchase income tax credits and would amend the definition of qualifying projects for purposes of Alabama’s incentives laws

For high-tech companies, this bill would enhance the Alabama Jobs Act incentives that are available to such companies; would allow the state to extend the Jobs Act incentives to any high tech company creating at least five jobs; would allow the investment tax credit calculation to include operating costs as well as capital costs; and would allow persons who move to Alabama to work in Alabama’s high-tech companies, as well as investors in such companies, not to pay tax upon the disposition of their ownership interests in the companies

The bill would expand the Opportunity Zone program in Alabama. The bill would create an Alabama capital gains tax reduction for investments in opportunity zone funds predominately investing in Alabama, in line with the federal Opportunity Zone law. The bill would allow various state funds to make investments into such opportunity zone funds and would guarantee principal protection or minimum rates of return for other investors in such funds, so long as extraordinary returns are allocated to such state funds

The bill would enhance the Growing Alabama Credits by creating funding mechanisms for improving industrial parks, worker and student retention, an Agricultural Center, and business accelerators

To make legislative findings; to amend Sections 40-18-376, 40-18-376.1, 40-18-410, 40-18-411, 40-18-412, 40-18-413, and 40-18-414, Code of Alabama 1975; to add new Sections 40-18-6.1, 40-18-8.1 and 40-18-376.3, Code of Alabama 1975; to add a new Article 2D to Chapter 10 of Title 41, Code of Alabama 1975; to add new tools for the attraction of new and expanding businesses in rural Alabama; to attract high-tech companies to Alabama; to add new tools for the attraction of new and expanding technology companies to Alabama; to make various enhancements to Alabama’s incentives laws; to enhance Alabama’s participation in the opportunity zone program; to provide for the repeal of conflicting laws; and to provide for an effective date.

Subjects

Taxation