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.

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This bill would reestablish the Growing Alabama Credit that was repealed following the close of fiscal year 2020 as it was established by Act 2016-102 and amended by Act 2019-392, with the following modifications: This bill allows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.

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.

This bill extends the sunset date for the Alabama Jobs Act to July 31, 2023 and increases the cap each calendar year through 2022.

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).

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.

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Subjects

Economic Development