SB125 Alabama 2021 Session

Summary

Primary Sponsor

Greg J. Reed

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

SB125 reestablishes and expands Alabama’s economic incentives, reviving the Growing Alabama Credit, extending and broadening the Alabama Jobs Act and Port Credit, and adding targeted credits for minority-owned, women-owned, pharma/medical, and technology companies, with county targeting and a 2023 sunset.

What This Bill Does

The bill brings back the Growing Alabama Credit with a $20 million annual cap and allows it to offset certain state taxes, with credits reserved for targeted counties and eligibility expanded to S-corporation and partnership owners, though it sunsets in 2023. It extends the Alabama Jobs Act to July 31, 2023 and increases annual cap limits through 2022. It expands the Port Credit by defining Vehicle Equivalent Units and related measures, allowing credits against port-related volumes and taxes with carryforward and transfer rules. It adds or enhances credits for minority-owned, women-owned, pharma/medical, and technology companies, including a technology-specific higher jobs credit and an investment credit, and creates a process for economic development organizations to apply for funding and oversee projects with reporting requirements and county targeting.

Who It Affects

• Businesses and business owners that qualify for incentives (including minority-owned, women-owned, pharmaceutical/medical research, and technology companies) would have access to expanded tax credits and investment credits, potentially reducing tax liabilities and funding projects.
• Economic development organizations, local and state, and targeted counties would manage applications, receive funding, enforce reporting, and distribute Growing Alabama Credits, with credits also affecting port facility users and related job creation within those counties.

Key Provisions

• Reestablishes the Growing Alabama Credit with a $20 million annual cap, allows use against the state portion of the financial institution excise tax and the insurance premiums tax, reserves a portion for targeted/jumpstart counties, permits ownership by S corporations/partners, and sunsets the program at the end of calendar year 2023.
• Extends the Alabama Jobs Act sunset to July 31, 2023 and increases the annual cap for Jobs Act credits through 2022, with broader eligibility including minority-owned and women-owned businesses and expanded investment credits.
• Extends and expands the Alabama Port Credit, including new definitions and measurement units like Vehicle Equivalent Units (VEU), allows credits against port facility cargo volume, and specifies offset methods, carryforwards (up to five years), and potential project allocations with caps and recapture provisions for non-performance.
• Adds a technology company track under the Jobs Act (with HQ/residence criteria and project requirements) that provides a 4% jobs credit plus an additional 2% for technology projects, plus an investment credit, and defines qualifying technology activities and beneficiaries.
• Expands eligibility for credits to minority-owned, woman-owned, pharma/biomedical, medical research, development, and manufacturing activities, and allows the technology investment credit to apply to technology-focused projects.
• Creates a program for local economic development organizations to apply for funding to prepare sites, support accelerators, and develop inland ports/intermodal facilities, with oversight by the Renewal of Alabama Commission, reporting requirements, and a minimum county-level impact focus (e.g., 1,000 acres for certain industrial sites).
• Establishes annual reporting and oversight mechanisms, requires online filing systems, and prohibits credits from exceeding tax liability or transferring credits to other taxpayers; limits on donor contributions and ensures rules are adopted by the Department of Commerce and Department of Revenue.
• States that Growing Alabama Credits will not be available for new applications approved after July 31, 2023 unless the Legislature acts to extend them, though existing approvals prior to that date remain unaffected.

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