SB125 Alabama 2021 Session

Sponsors

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.

Description

<p class="bill_description"> This bill would reestablish the Growing Alabama Credit that was repealed following the close of fiscal year 2020 as it was established by Act 2016-102 and amended by Act 2019-392, with the following modifications: This bill allows the credit to be applied against the state portion of the financial institution excise tax and the insurance premiums tax, establishes a $20 million annual cap on credits, specifies that a portion of the credits are reserved for targeted or jumpstart counties as defined in the statute, allows the credit to be taken by owners of an S corporation or other partnership, and sunsets the tax credit at the end of calendar year 2023</p><p class="bill_description"> Under the existing Alabama Jobs Act, certain incentivized companies are allowed a jobs credit and an investment credit for creating new jobs in Alabama, which incentives were not available for new projects after December 31, 2020</p><p class="bill_description"> This bill extends the sunset date for the Alabama Jobs Act to July 31, 2023 and increases the cap each calendar year through 2022</p><p class="bill_description"> Under the existing Alabama Port Credit, shippers are provided a tax credit against their Alabama income tax liability for import/export general and containerized cargoes. This bill provides further definitions to include the automotive industry’s form of shipping’s unit of measure, the Vehicle Equivalent Unit (VEU)</p><p class="bill_description"> This bill would further allow additional credits for minority-owned and women-owned businesses, and for companies involved in pharmaceutical and medical research, development, and manufacturing, and allow the investment credit to be used for technology companies</p><p class="bill_entitled_an_act"> To amend Sections 40-18-370, 40-18-375, 40-18-376.3, 40-18-382, 40-18-383, 40-18-400, and 40-18-403, Code of Alabama 1975, relating to tax credits for the Alabama Jobs Act; to make nonsubstantive, technical revisions to update the existing code language to current style; to allow additional jobs credits for minority-owned and women-owned businesses and to provide definitions; to allow additional jobs credits for pharmaceutical and medical research, development, and manufacturing; to extend the investment credits to technology companies; to extend the sunset date for the Alabama Jobs Act; to increase the annual cap of Jobs Act credits; to specify the reservation of credits for projects in targeted or jumpstart counties; to provide further definitions and allowable credits for the Alabama Port Credit; to reestablish the Growing Alabama Credits; to allow a mechanism for an economic development organization to apply for funding; to allow for the credit to be taken against the state portion of the financial institution excise tax and the insurance premiums tax; to provide for an annual cap for the amount of Growing Alabama Credits; to clarify the reservation of credits for projects in targeted or jumpstart counties; to allow the credit to be taken by owners of S corporations and other partnerships; to provide rulemaking authority; and to provide for a sunset of the Growing Alabama Credits after calendar year 2023. </p>

Subjects

Economic Development