HB445 Alabama 2023 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2023

Title

Relating to economic development; to amend Section 40-18-417.4, Code of Alabama 1975, as amended by Act 2023-34 of the 2023 Regular Session; to amend Section 5 of Act 2023-34 of the 2023 Regular Session, now appearing as Sections 40-18-472 and 40-18-473, Code of Alabama 1975, to correct a date referenced in the Growing Alabama Act; to clarify the tax rebates under the Sweet Home Alabama Tourism Investment Act for certain businesses for certified tourism destination projects are only available for projects placed into service after the effective date of this act; to amend Section 41-7-3, Code of Alabama 1975 to include the Chairs of the Senate Finance and Taxation Education Committee and Ways and Means Education Committee and the ranking minority member of each committee, or their designees, to the Tourism Advisory Board; and to amend Sections 41-10-47.03 and 41-10-47.04, Code of Alabama 1975, from Section 1 of Act 2023-35 of the 2023 Regular Session, to align rural population provisions of the Site Evaluation Economic Development Strategy with the Jobs Act.

Summary

HB445 tightens and clarifies Alabama's economic development programs by limiting tourism tax rebates to post-effectiveness projects, updating Growing Alabama credits, adjusting tourism governance, and aligning site evaluation rules with the Jobs Act.

What This Bill Does

The bill restricts Sweet Home Alabama tax rebates to projects placed into service after the act becomes effective. It updates Growing Alabama Credits with rising yearly caps, a 50% maximum reduction of tax liability, online administration, and a five-year carry-forward, plus a requirement that at least 25% of funding go to targeted or jumpstart counties. It adds the Chairs and ranking minority members of key legislative committees as voting ex officio on the Tourism Advisory Board. It alignment-site evaluation provisions with the Jobs Act by updating site assessment and site development grant criteria based on county population and requiring project agreements.

Who It Affects

• Businesses and developers proposing or operating certified tourism destination projects, who would be eligible for rebates only after placing projects into service and subject to annual and aggregate caps and rules.
• Local governments, municipalities, counties (especially targeted or jumpstart counties), and local economic development organizations, which must approve projects with resolutions, provide matching funds, and meet site grant requirements under the updated rules.

Key Provisions

• Clarifies that tax rebates under the Sweet Home Alabama Tourism Investment Act apply only to projects placed into service after the act’s effective date.
• Growing Alabama Credit changes: establishes rising annual caps over time, allows up to 50% reduction of a taxpayer’s Alabama tax liability, provides a five-year carry-forward for unused credits, and requires online administration.
• Requires that at least 25% of Growing Alabama Credit funding be reserved for projects in targeted or jumpstart counties, with potential fund reversion if not allocated.
• Sets an annual aggregate cap for Growing Alabama Credits (with a potential one-time increase for a single large project) and outlines matching fund requirements and use of the credits.
• Rebates for certified tourism destination projects: up to $5 million per project over 10 years, with a $1 million per calendar year cap per approved company; rebates can be used for state and local taxes and other taxes, are transferable to future owners, start after project operation begins, and are administered by the Department of Revenue with payments in January and July.
• Municipal support requirement: the local governing authority must pass a resolution acknowledging support and that at least 20% of rebates will come from municipal taxes.
• Tourism Advisory Board: adds Chairs and ranking minority members of the Senate Finance and Taxation Education Committee and Ways and Means Education Committee as voting ex officio members.
• Site Evaluation and Jobs Act alignment: updates site assessment (minimum 50 acres) and site development (minimum 75 contiguous acres) grant criteria with county-population-based cost sharing and requires a project agreement; enhances alignment with the Jobs Act.

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 and revenue, Sweet Home Alabama Tourism Investment Act amended to clarify intent of program