HB250 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Ben RobbinsRepresentative
Republican
Session: Regular Session 2024
Title: Tax credits, authorizes ADEM to issue tax credits to persons using certain recyclable materials, sale and trade of recycle tax credits, civil penalties for fraud.
Summary: HB250 creates a recycle credit program managed by the Alabama Department of Environmental Management that awards transferable credits for using recyclable materials to make new products or energy, and lets credits be bought, sold, and used to offset landfill disposal costs.
What This Bill Does
The bill authorizes the Department to issue recycle credits for every ton of recyclable materials used to produce a new product or an energy source, and allows these credits to be bought and sold in a recycle credit market. It sets that prices are determined by the agreement between the seller and buyer, and the department will establish the necessary forms and rules. Credits expire after three years or when transferred to a public or private landfill operator, whichever comes first, and the department cannot issue more than 50 million credits per calendar year. It also requires registration within 30 days of a transfer and authorizes civil penalties for fraud or falsification of certificates.

Who It Affects
Recyclers and manufacturers that use recyclable materials to produce a new product or energy source; they would receive transferable recycle credits for each ton used and may sell or trade those credits.
Public and private landfills or other entities that incur solid waste disposal costs; they can acquire credits to offset disposal costs and participate in the open credit market.

Key Provisions
Creation of a transferable recycle credit for every ton of recyclable materials used to create a new product or an energy source; a corresponding certificate evidences ownership, quantity, and date.
Credits may be bought, sold, or transferred in a recycle credit market, with prices set by the transfer agreement and forms established by the department.
Issuance rules, including that credits are issued after an application showing at least one ton of recyclable materials was used; the department may charge issuance fees.
Expiration rules where credits expire on the third anniversary of issuance or on transfer to a disposal facility operator, whichever occurs first; a cap of 50 million credits per calendar year.
Registration requirements: transfers must be registered within 30 days with a registration form and fee; the department sets the form and fee.
Compliance and penalties: it is illegal to falsify a recycle credit certificate or to fraudulently transfer a credit; civil penalties may be imposed under the Alabama Environmental Management Act.
Administration and effective date: the department will adopt rules and administer all transactions; the act takes effect October 1, 2024.

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 & Revenue