SB57 Alabama 2022 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Co-Sponsor

Greg Albritton

Session

Regular Session 2022

Title

Economic tax incentives, reporting requirements of state agencies, Sec. 40-1-50 am'd.

Summary

SB57 tightens reporting, adds sunset rules, and increases transparency for Alabama's economic tax incentives.

What This Bill Does

It requires state agencies that administer economic tax incentives to report annually to the Legislature using a standardized format and schedule, with Department of Revenue guidance and joint hearings every odd-numbered year. It establishes sunset rules for incentives, including automatic repeal for those without expiration dates in 2023 unless extended, and limits extended programs to five years after 2023. It also imposes new requirements for any new incentive legislation, such as performance statements, five-year expiration, annual credit limits, five-year carryforward limits, transfer restrictions, pre-certification, and mandatory post-2023 reporting of claimed credits by taxpayers.

Who It Affects

• State agencies that administer economic tax incentives: must annually report on each incentive, follow a standardized format, and align with the Department of Revenue's reporting schedule and guidelines.
• Taxpayers and businesses that claim economic tax incentives: face sunset dates, potential expiration of incentives, and additional rules such as performance statements, annual limits, carryforward limits, transfer restrictions, pre-certification, and required reporting of claimed credits after 2023.

Key Provisions

• Defines economic tax incentives and requires annual reporting to the Legislature by the administering agencies.
• Department of Revenue provides the reporting format and a four-year schedule of incentives to be reported.
• Incentives without expiration dates repealed on December 31, 2023 unless extended by the Legislature; extended programs limited to five years from end of 2023.
• New incentive legislation beginning 2023 must include a tax credit performance statement describing legislative purpose and must include expiration after five years, annual credit limits, a five-year carryforward limit, transfer/sale restrictions, and pre-certification by the Department of Revenue.
• Taxpayers claiming new credits after 2023 must report the amount of the tax preference claimed.
• House Ways and Means Education and Senate Finance and Taxation - Education committees will hold joint hearings on the tax expenditure report in odd-numbered years.

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

Subjects

Taxation