HB241 Alabama 2023 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2023

Title

Relating to the Alabama Jobs Act and the Growing Alabama Act; to amend Sections 40-18-370, 40-18-372, 40-18-374, 40-18-375, 40-18-376, 40-18-376.1, 40-18-376.2, 40-18-376.3, 40-18-376.4, 40-18-377, 40-18-378, 40-18-382, 40-18-383, 40-18-417.1, 40-18-417.2, 40-18-417.3, 40-18-417.4, 40-18-417.7, and 40-9B-4.1, Code of Alabama 1975, to extend the Alabama Jobs Act sunset date to July 31, 2028; to increase the annualized cap on outstanding Alabama Jobs Act incentives by twenty-five million dollars each year for five years up to four hundred seventy-five million dollars; to increase the investment tax credit transfer time to provide that the first five years of the investment credit may be transferred by the incentivized company and applied by another person or company under the Alabama Jobs Act; to extend the Growing Alabama Act sunset date to July 31, 2028, to increase the annual cap on funding approved pursuant to the Growing Alabama Act to thirty-five million dollars; to remove certain programs from the Growing Alabama Act for the transfer to Innovate Alabama.

Summary

HB241 extends and broadens Alabama’s economic incentives through 2028, boosts funding caps, expands credit transferability, and launches a Sweet Home Alabama Tourism Investment Act with tourism rebates and a dedicated funding mechanism.

What This Bill Does

It extends the sunset dates for the Alabama Jobs Act and Growing Alabama Act to July 31, 2028 and raises annual incentive caps; it also increases the time to transfer investment credits to five years. The bill creates the Sweet Home Alabama Tourism Investment Act, with standards, a review board, and tax rebates for certified tourism destination projects, plus a new Tourism Project Sales Tax Incentive Fund and reporting requirements. It also moves certain Growing Alabama programs to Innovate Alabama and expands special provisions for technology, veteran, and underrepresented groups within the acts.

Who It Affects

• Approved companies and related companies under the Alabama Jobs Act, who would see higher annual caps and longer periods to claim incentives, and who may be allowed to transfer investment credits to other entities.
• Veterans and employers of veterans, who may receive an additional 0.5% jobs credit under certain incentives, with verification by the Department of Labor.
• Technology companies that meet the tech-employee and HQ criteria, which may qualify for expanded incentives and longer credit periods.
• Businesses located in targeted or jumpstart counties, which may receive enhanced credits (up to 4%) and extended investment credit periods (up to 15 years in some cases).
• Economic development organizations and local governments, which participate in certifying and supporting certified tourism destination projects and in demonstrating local backing for rebates.
• Tourism project developers and their local jurisdictions, which would be eligible for tax rebates (state and local taxes, lodging taxes, etc.) for certified tourism destination projects and must operate within set caps and reporting rules.
• Innovate Alabama, which would receive certain Growing Alabama programs as part of a program transfer.
• State agencies (Department of Revenue, Department of Commerce, Alabama Tourism Department, Department of Labor, Department of Finance) responsible for administering credits, rebates, transfers, audits, and reporting.
• Projects involving certified tourism destinations and related localities that must secure local government resolutions and meet program requirements to receive rebates.

Key Provisions

• Extend the Alabama Jobs Act sunset date to July 31, 2028.
• Increase the annualized cap on outstanding Alabama Jobs Act incentives by $25 million each year for five years, up to $475 million.
• Increase the investment credit transfer time to five years, allowing the first five years of the investment credit to be transferred and applied by another person or company under the Alabama Jobs Act.
• Extend the Growing Alabama Act sunset date to July 31, 2028 and raise the annual cap on funding to $35 million; remove certain programs from the Growing Alabama Act for transfer to Innovate Alabama.
• Create the Sweet Home Alabama Tourism Investment Act, with standards for certified tourism destination projects, an Alabama Tourism Advisory Board to review and certify projects, and authority to grant tax rebates for these projects.
• Establish the Tourism Project Sales Tax Incentive Fund to hold rebates and set up an approval/renewal process, reporting requirements, and a transfer framework for rebates.
• Tax rebates for certified tourism destination projects: rebates may offset state and local taxes (sales/use, lodging, and other transactional taxes) for up to 10 years per project, with annual caps and a 10% set-aside for projects in targeted or Alabama counties.
• Per-project rebate limits: up to $5,000,000 over 10 years, with no more than $1,000,000 in rebates in a calendar year per project; aggregate annual rebates capped at $10,000,000 (with a 10% targeted county set-aside).
• One-time designation up to $2,500,000 in rebates for a megaproject (minimum $75,000,000 capital investment) per calendar year, subject to approval.
• Rebates become effective August 1, 2023 and continue through July 31, 2028 unless extended by law; rebates are administered by the Department of Revenue in coordination with the Alabama Tourism Department.
• Investment credits under the Sweet Home Alabama and related acts may be carried forward for up to five years and converted to offset several tax types, with rules to prevent double-dipping and to ensure credits are earned before issuance.
• Transfers of investment credits require Secretary of Commerce approval and must meet criteria (minimum value, transferee limits, and demonstrated economic benefit); related information is certified and shared with the Department of Revenue for processing.

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