Bill Summary
This bill would allow a tax credit for the purchase of tires to be claimed by automobile manufacturers and aviation manufacturers who manufacture motor vehicles and aircraft within the state of Alabama and are subject to Alabama income tax
To create an income tax credit for in-state automobile manufacturers and in-state aviation manufacturers.
Bill Text
This bill would allow a tax credit for the purchase of tires to be claimed by automobile manufacturers and aviation manufacturers who manufacture motor vehicles and aircraft within the state of Alabama and are subject to Alabama income tax
To create an income tax credit for in-state automobile manufacturers and in-state aviation manufacturers.
Section 1
The following terms shall have the following meanings for the purposes of this bill: (1) AUTOMOBILE MANUFACTURER. Any business described by NAICS Code 3361 and 3362. (2) AVIATION MANUFACTURER. Any business described by NAICS Code 336411. (3) IN-STATE AUTOMOBILE MANUFACTURER. Taxpayer who is an automobile manufacturer, herein defined, and who is subject to the tax on taxable income per Section 40-18-2, Code of Alabama 1975. (4) IN-STATE AVIATION MANUFACTURER. Taxpayer who is an aviation manufacturer, herein defined, and who is subject to the tax on taxable income per Section 40-18-2, Code of Alabama 1975. (5) TAXPAYER. As this term is defined in Section 40-18-1, Code of Alabama 1975.
Section 2
(a) There shall be allowed an income tax credit to any in-state automobile manufacturer or in-state aviation manufacturer equal to the cost of the purchase of tires manufactured in the state of Alabama used in the production of an automobile or aircraft. (b) In no event shall the credit by this act exceed $5,000,000 per year. (c) Where the taxes owed by the taxpayers are less than the tax credit, the taxpayer shall not be entitled to claim a refund for the difference. The tax credit is not transferable. (d) The Alabama Department of Revenue shall promulgate rules to administer and implement the provisions of this act.
Section 3
The tax credit allowed under this bill shall be effective January 1, 2020, for the 2020 taxable year and shall continue through the 2025 tax year, unless extended by an act of the Legislature.
Section 4
This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.
Bill Actions
| Action Date | Chamber | Action |
|---|---|---|
| February 4, 2020 | H | Read for the first time and referred to the House of Representatives committee on Ways and Means Education |
Bill Documents
| Document Type | Document Location |
|---|---|
| Bill Text | http://alisondb.legislature.state.al.us/ALISON/SearchableInstruments/2020RS/PrintFiles/HB11-int.pdf |