SB152 Alabama 2023 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2023

Title

Relating to economic development; to amend Sections 41-10-802 and 41-10-822, Code of Alabama 1975, to provide for a name change for the Alabama Innovation Corporation and revise the residency requirements for certain grant recipients; to amend Section 41-10-805, Code of Alabama 1975, relating to the Board of Directors of the Alabama Innovation Corporation, to make conforming changes to accurately cite the Code of Alabama 1975; and to add a new Article 22, commencing with Section 41-10-840, to Chapter 10 of Title 41, Code of Alabama 1975, to reestablish the technology accelerator tax credit program and the underrepresented company tax credit program as the Innovating Alabama tax credit program; and to exempt working groups, task forces, and subcommittees of the Alabama Innovation Corporation from the Alabama Open Meetings Act.

Summary

SB152 would rename the Alabama Innovation Corporation to Innovate Alabama, tighten grant residency rules, create the Innovating Alabama tax credits for accelerators and underrepresented companies, and exempt certain Innovate Alabama groups from open meetings requirements.

What This Bill Does

It authorizes the public corporation to be known as Innovate Alabama and adds a one-year window to establish Alabama as the principal place of business for grant eligibility, with a majority of top executives and employees residing in Alabama. It creates the Innovating Alabama tax credit program to support accelerators and underrepresented companies, outlining how eligible projects can apply and be funded. It sets rules for tax credits, including caps, how credits offset taxes, non-transferability, and reporting requirements, and it exempts certain Innovate Alabama working groups from Open Meetings Act. It also requires oversight, reporting, and formal agreements between Innovate Alabama, the Department of Revenue, and the Department of Commerce, with a sunset for new credits after July 31, 2028 unless extended by the Legislature.

Who It Affects

• Economic development organizations, technology accelerators, and entities seeking grants or Innovating Alabama tax credits to support accelerator programs or initiatives for underrepresented companies; they would face new residency/place-of-business requirements and grant terms.
• Taxpayers and businesses that could receive Innovating Alabama tax credits (including S-corporations, partnerships, and individuals contributing to approved organizations) and the state agencies administering the program (Department of Revenue and Department of Commerce), who would encounter credit limits, reporting duties, and compliance rules.

Key Provisions

• Name change: The Alabama Innovation Corporation may be known as Innovate Alabama.
• Residency/grant eligibility changes: To receive a grant, an entity must (within one year) establish Alabama as its principal place of business, have a majority of top executives reside in Alabama, and have a majority of employees residing in Alabama for five years.
• New Article 22: The Innovating Alabama Act defines Accelerators, Economic Development Organizations, Local/State Economic Development Organizations, Innovate Alabama, and Innovating Alabama Tax Credit.
• Grant program framework: Economic development organizations may apply for Innovating Alabama tax credits to fund accelerators or programs for innovative companies; applications must include conflict-of-interest policies and notarized affirmations; approvals depend on Innovate Alabama’s determination and may include performance and impact reporting.
• Funding rules and reporting: Approved projects require use of funds as approved, periodic reporting (at least annually) including economic impact reports, and financial reviews as directed by Innovate Alabama; agreements outline grant amounts and conditions.
• Tax credits and administration: Innovating Alabama tax credits offset multiple state taxes, are capped at 50% of liability, cannot reduce tax liability by more than 50%, and unused credits can be carried forward up to five years; credits are non-transferable and require an online filing system overseen by the Department of Revenue.
• Cap and sunset: The total credits approved cannot exceed $25 million per calendar year (starting 2023), with at least $10 million reserved for certain projects; credits approved after July 31, 2028 would require legislative extension to remain available.
• Open Meetings Act exemption: Working groups, task forces, and subcommittees of Innovate Alabama are exempt from the Alabama Open Meetings Act.
• Effective date: The act becomes effective immediately after passage and approval by the Governor.

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