HB192 Alabama 2021 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular Session 2021

Title

Economic development, job credit and investment credit for approved projects sunset date extended, incentives for attraction of new and expanding business including rural areas, incentives for high-tech companies Growing Alabama Act, Income tax, tax credits for use of state's port facilities, authorized, Secs. 40-18-370, 40-18-375, 40-18-376.3, 40-18-382, 40-18-383, 40-18-400, 40-18-403 am'd.

Summary

HB192 expands and extends Alabama's economic development tax incentives, adds new credits for underrepresented and high-tech/pharma businesses, and creates Growing Alabama credits with funding, oversight, and port-related incentives.

What This Bill Does

It broadens the Alabama Jobs Act by increasing credits, lengthening incentive periods, and widening eligibility to include pharmaceutical/biomedical and technology projects. It creates Growing Alabama Credits with a $20 million annual cap (plus up to $4 million for accelerators), allows online donations to fund approved economic development organizations, and reserves at least 25% of credits for targeted or jumpstart counties. It adds a new underrepresented company credit with higher wage credits and a longer investment credit term, and provides rules for credit transfers and allocations for flow-through entities. It strengthens port-related incentives and creates funding pathways for economic development organizations to improve sites, inland ports, accelerators, and agricultural centers, all under new oversight and with sunset provisions if not extended by 2023.

Who It Affects

• Incentivized companies and investors, including technology firms, pharmaceutical/biomedical companies, and underrepresented businesses, who may qualify for expanded jobs and investment credits and may participate in credit transfers or flow-through allocations under specified rules.
• Local economic development organizations, port facilities, and communities—especially targeted or jumpstart counties—who can apply for state funding to improve sites, develop inland ports or intermodal facilities, run accelerators, and support related economic development projects, with reporting and oversight requirements.

Key Provisions

• Amends and adds to Sections 40-18-375, 40-18-376, 40-18-376.3, 40-18-382, 40-18-383, 40-18-400, and 40-18-403, and adds 40-18-376.4 to create new incentives and definitions.
• Expands jobs credits: base 3% of wages for eligible employees (10-year period); pharmaceutical/biomedical/medical devices manufacturing and related R&D get 4% (10-year period); technology carve-out adds enhanced credits for tech projects.
• Expands investment credits: 1.5% of capital investment to offset various taxes (income tax, financial institution excise tax, insurance premium tax, utility taxes, and state license taxes) with a 10-year incentive period and carryforward rules; allows transfer and allocation to flow-through entities and owners with specific approval and recapture provisions for defaults.
• Technology company provisions: HQ/residency and employment criteria for tech projects; higher credits for qualified technology projects with additional findings by the Secretary of Commerce; 10-year plan and special eligibility provisions.
• Growing Alabama Credits: annual cap of $20 million; online donation system; donors cannot exceed approved amounts; credits usable against income tax, financial institution excise tax, insurance premium tax, and state license taxes; credit cannot reduce tax liability by more than 50% and may be carried forward up to five years; at least 25% reserved for targeted/jumpstart counties; up to $4 million allowed for accelerator programs; credits not available for applications not approved by July 31, 2023 unless extended by the Legislature.
• Port credits: defined port facility credits using rates ($50/TEU, $3/ton, $0.04/kg for air freight, $2.91/VEU); credits offset specified taxes with carryforward and transfer options; economic rationale and recapture provisions if project defaults; per-project and allocation limits.
• Growing Alabama and site funding framework: local EDOs may apply for funding to prepare sites or infrastructure, including inland ports and accelerators; Renewal of Alabama Commission approves funding; Department of Commerce administers and reports on funded projects; site improvements and economic impact analyses required; oversight and reporting to Legislature.
• Sunset and administration: Growing Alabama Credits sunset for new approvals after July 31, 2023 unless extended; Department of Commerce and Department of Revenue to adopt implementing rules; act becomes effective immediately upon passage.

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

Subjects

Economic Development