HB441 Alabama 2024 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2024

Title

Growing Alabama Act, Innovating Alabama Act, Alabama Jobs Act, Innovate Alabama, allow existing communities to qualify for incentives

Summary

HB441 preserves eligibility for state incentives in NMTC-eligible Alabama communities despite federal census map changes and expands support for innovation and underrepresented entrepreneurs.

What This Bill Does

The bill ensures communities identified as NMTC census tracts as of January 1, 2015 (or identified later) will continue to qualify for the Growing Alabama Act, Innovating Alabama Act, Alabama Jobs Act, and Innovate Alabama even after the federal NMTC map changes on September 1, 2024. It also creates new rules for 'underrepresented' companies, including a path for small locally based firms or majority-owned firms led by women or African Americans to receive incentives such as job credits and investment credits (with a 15-year incentive limit). It authorizes Innovate Alabama to offer credits for accelerators, funding programs, and workforce development for innovative companies, with required conflict-of-interest protections and economic impact reporting. Finally, the bill establishes the Alabama Innovation Fund and the Alabama Innovation Corporation, with broad powers and a governance structure that includes an inclusive advisory committee to implement these programs.

Who It Affects

• Communities that would otherwise lose NMTC-related eligibility will continue to qualify for state incentives in Growing Alabama Act, Innovating Alabama Act, Alabama Jobs Act, and Innovate Alabama.
• For-profit businesses and local economic development organizations that meet the 'underrepresented' criteria or participate in Innovating Alabama programs will gain access to tax credits, grants, funding, accelerators, and other support designed to promote innovation and job creation.

Key Provisions

• Amends sections 40-18-376.4, 40-18-417.2, 41-10-801, 41-10-804, and 41-10-842 to align eligibility with NMTC census tract changes and preserve existing communities' access to state incentives.
• Defines 'Underrepresented Company' and 'Underrepresented Person', including two eligibility paths: (a) small for-profit in an NMTC-eligible community with fewer than 10 employees and < $500,000 revenue; or (b) 51% owned/controlled by underrepresented persons (women or African Americans).
• Provides incentives for underrepresented companies: existence of qualifying project if 10 new jobs are created; a jobs credit against utility taxes up to 4% of wages for Alabama residents; and an investment credit with a 15-year incentive period.
• Creates Innovating Alabama credits under 41-10-842 for accelerators and programs that support innovative companies, with requirements for economic impact reports and conflict-of-interest policies.
• Establishes the Alabama Innovation Fund and the Alabama Innovation Corporation, with broad powers to finance, manage, invest, contract, hire staff, attract private investment, and partner with public and private entities.
• Creates a governance framework including an inclusive advisory committee, remote participation, and reporting, to oversee implementation of the act.
• Effective date: June 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