HB443 Alabama 2023 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2023

Title

Relating to economic tax incentives; to amend Section 40-1-50, Code of Alabama 1975; to change the reporting date requirements of state agencies which administer economic tax incentives; to align committee schedules to review state agency reports; to establish sunset dates for tax incentive programs; to establish future sunset dates for extended tax incentive programs; and to provide required guidelines for all new incentive legislation.

Summary

HB443 would reorganize Alabama's economic tax incentives by tightening agency reporting, setting sunset dates for many programs, and adding new guidelines for future incentives.

What This Bill Does

The bill requires state agencies that administer economic incentives to annually report outcomes using a standardized format and a four-year reporting schedule. It creates sunset dates for several existing incentive programs (with repeal on December 31, 2028 unless extended for up to five additional years) and requires sunset dates for extended programs as well. It repeals multiple existing incentive acts and, starting in 2024, requires new incentive legislation to include performance statements, defined expiration after five years, annual credit limits, a five-year carryforward limit, transfer restrictions, and pre-certification requirements, along with reporting of tax preferences; the Department of Revenue will provide report formats and data, and legislative committees will hold regular hearings to review these incentives.

Who It Affects

• State agencies that administer economic tax incentives must compile and submit annual reports in a standardized format and adhere to new administration and reporting guidelines.
• Businesses and individuals that rely on or may qualify for economic tax incentives will be affected by the sunset of several programs, the introduction of performance-based requirements for new incentives, and the new rules governing expiration, caps, carryforwards, and pre-certification.

Key Provisions

• Amends Section 40-1-50 to require annual, standardized reporting by agencies that administer economic tax incentives, with a four-year reporting schedule and committee review.
• Establishes sunset dates and potential five-year extensions for specified programs (Brownfield Development Tax Abatement Act, Rural Physician Tax Credit, Coal Production Tax Credit, Reemployment Act, Full Employment Act, Veterans Employment Act, Irrigation Equipment Tax Credit, Entertainment Industry Incentive Act, Alabama Enterprise Zone Act) with repeal effective December 31, 2028 unless extended by the Legislature.
• Repeals the listed incentive acts (Sections 2-10) effective December 31, 2028 unless extended, and clarifies that repeal affects future availability, not credits already awarded through December 31, 2028.
• Starting with 2024, requires new economic tax incentive legislation to include a tax credit performance statement of legislative purpose, expiration after five years, annual credit limits, five-year carryforward limits, transfer restrictions, and pre-certification requirements; requires reporting of tax preferences for credits claimed after 2024.
• Department of Revenue duties include developing standardized report formats, providing necessary tax information, and creating a four-year schedule of incentives to be reported to the Legislature; committees will hold hearings every odd-numbered year to analyze and recommend actions on incentives.
• Effective date is the first day of the third month after passage and governor approval.
• Prior credits earned before December 31, 2028 are not reduced or suspended by the future repeal of listed incentives.

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 tax incentives, reporting requirements of state agencies