HB11 Alabama 2020 Session

Summary

Primary Sponsor

Craig LipscombRepresentative

Republican

Session

Regular Session 2020

Title

Income tax credit, created for in-state automobile manufacturers and in-state aviation manufacturers

Summary

HB11 creates a new, nonrefundable Alabama income tax credit for in-state automobile and aviation manufacturers equal to the cost of tires purchased for use in production, capped at $5 million per year (2020–2025).

What This Bill Does

The bill allows eligible Alabama-based automobile and aviation manufacturers to claim a tax credit equal to the cost of tires manufactured in Alabama and used in producing cars or aircraft. The credit is limited to $5 million per year and is nonrefundable and non-transferable. If a taxpayer's Alabama tax liability is smaller than the credit, the excess cannot be refunded. The Alabama Department of Revenue would issue rules to administer the credit, and the credit would take effect for the 2020 tax year and continue through 2025 unless extended.

Who It Affects

• In-state automobile manufacturers (NAICS 3361, 3362) and in-state aviation manufacturers (NAICS 336411) that purchase tires to use in production of motor vehicles or aircraft in Alabama, who may claim the credit against Alabama income tax.
• Taxpayers subject to Alabama income tax who are eligible manufacturers, who may see a reduction in their tax liability (up to the annual cap).
• Alabama Department of Revenue, which would promulgate rules to administer and implement the credit.

Key Provisions

• Defines eligible taxpayers as in-state automobile manufacturers (NAICS 3361/3362) and in-state aviation manufacturers (NAICS 336411) subject to Alabama taxable income tax.
• Creates a tax credit equal to the cost of tires manufactured in Alabama and used in production of automobiles or aircraft.
• Credit is capped at $5,000,000 per year.
• Credit is nonrefundable and not transferable; any remaining credit beyond tax liability is not refundable.
• Rules to administer the credit will be issued by the Alabama Department of Revenue.
• Effective for the 2020 tax year and remaining through the 2025 tax year, unless extended.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Income Tax Credits