HB195 Alabama 2020 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Danny GarrettRepresentative
Republican
Session: Regular Session 2020
Title: Commerce, Alabama Rural and Agribusiness Jobs Act
Summary: HB 195 creates the Alabama Rural and Agribusiness Jobs Act to certify growth funds and provide tax credits to investors to support rural, minority, and female‑owned businesses.
What This Bill Does
It establishes a process to certify growth funds and allows the Department of Commerce to issue tax credit certificates to taxpayers who invest in those funds. It defines growth funds, growth businesses, and growth zones, and sets requirements that investments must mostly go to rural areas, agribusiness, and minority- or female‑owned firms. It places a cap on annual tax credits, outlines how the credits are earned and used, and sets rules for fund operation, reporting, exits, and possible revocation. The act applies to tax years starting in 2022 and creates ongoing oversight by the Department of Commerce.

Who It Affects
Taxpayers with state premium tax liability who invest in certified growth funds and seek a credit against their premium tax
Growth funds that must be certified by the Department of Commerce and must invest in designated growth investments
Growth businesses and rural areas eligible to receive investments (including agribusiness and minority- or female‑owned firms in growth zones)
Insurance companies and other entities affected by credits, as the Department must notify the Department of Insurance about allocated credits
Non-metropolitan counties and rural communities targeted for investment
State and local governments indirectly through tax revenue and job creation impacts

Key Provisions
Creates the Alabama Rural and Agribusiness Jobs Act and defines key terms (growth fund, growth business, growth zone, etc.)
Requires applications for growth fund certification with specified evidence, and sets an annual tax credits cap of 7.5 million dollars in credits per year; approvals may be reduced pro rata if demand exceeds the cap
Requires growth funds to invest 100% of their investment authority in growth investments in Alabama within two years, with at least 25% in agribusiness, at least 25% in minority- or female-owned businesses, and at least 75% in rural-area growth businesses, maintaining these levels through year six
Provides a tax credit to investors equal to their investor contribution against state premium tax liability, with 20% of the earned credit usable after the third anniversary; credits are non-refundable and non-transferable except to an affiliate; carry forward up to 10 years
Allows the Department to revoke a growth fund’s tax credit certificates for specified violations and to reallocate investment authority and investor contributions
Allows growth funds to exit the program after seven years if certain conditions are met, and requires the state to receive a 10% share of distributions beyond eligible distributions; imposes conditions on continuing distributions and requires ongoing reporting until 150% of investment authority is invested
Requires annual reporting by growth funds, including investments, jobs, salaries, financial statements, and a $5,000 annual reporting fee; authorizes department to adopt implementing rules
Effective for tax years beginning on or after January 1, 2022; the act becomes law after approval; the Department of Insurance is to be notified of credits allocated to insurance companies

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