SB164 Alabama 2023 Session

Summary

Primary Sponsor

Greg J. Reed

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

SB164 extends and strengthens Alabama's economic development incentive programs through 2028, raises funding caps, and expands how credits can be transferred and used, while shifting some Growing Alabama activities to Innovate Alabama.

What This Bill Does

The bill extends the sunset dates for the Alabama Jobs Act, the Growing Alabama Act, and certain data-center incentives to July 31, 2028, and increases annual caps to enable larger projects. It allows the first five years of investment credits to be transferred and used by other persons or entities under the Alabama Jobs Act, improving flexibility for financing development. It increases the Growing Alabama Act funding cap to 35 million dollars per year, moves some Growing Alabama programs to Innovate Alabama, and preserves the Alabama Data Center Processing Economic Incentive Enhancement Act through 2028. It also creates enhanced incentives for targeted or jumpstart counties (higher job credits and longer investment-credit periods), expands veteran and underrepresented-group credits, and adds new technology and underrepresented-company credit categories with associated reporting and compliance requirements.

Who It Affects

• Approved companies under the Alabama Jobs Act and their related companies and affiliates, who would gain extended incentive timelines, higher caps, and more flexible credit transfer options.
• Economic development organizations, taxpayers who contribute to Growing Alabama Act programs, and local governments, who would see higher funding caps, extended program life, and new transfer pathways to Innovate Alabama.

Key Provisions

• Extend the Alabama Jobs Act sunset date to July 31, 2028.
• Increase the annual cap on outstanding Alabama Jobs Act incentives by $25 million per year for five years, up to $475 million total.
• Extend the investment credit transfer period to five years, allowing the first five years of the investment credit to be transferred by the incentivized company and used by another person or company under the Act.
• Extend the Growing Alabama Act sunset date to July 31, 2028 and raise the annual funding cap to $35 million.
• Transfer certain Growing Alabama Act programs to Innovate Alabama.
• Allow the Alabama Data Center Processing Economic Incentive Enhancement Act incentive to continue through July 31, 2028.
• Create enhanced incentives for targeted and jumpstart counties, including up to a 4% jobs credit in targeted counties and an investment-credit period of up to 15 years, with minimum job and capital requirements, and allow limited project allocations per year in non-targeted counties.
• Provide additional credit opportunities for veterans and for projects located at former active-duty military installations (0.5% extra jobs credit in each applicable category, subject to verification by the Department of Labor).
• Establish technology and underrepresented-company incentive categories with specific jobs credits (e.g., 4%) and 15-year investment credits, including definitions and qualification criteria related to geographic HQ location, ownership, and sector focus.
• Require annual reporting, audits, and compliance measures by the Department of Revenue, Department of Labor, and other agencies, with recapture provisions for unearned credits and joint liability among liable parties.
• Limit new incentives under Act 2012-210 to projects approved on or before July 31, 2028, unless further extension is enacted.

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