SB167 Alabama 2024 Session

Summary

Primary Sponsor

Merika ColemanSenator

Democrat

Session

Regular Session 2024

Title

Alabama Jobs Act; requirements for approved companies revised

Summary

SB167 tightens the Alabama Jobs Act by allowing the state to recapture incentives if the incentivized company or its affiliates commit human trafficking or violate the Fair Labor Standards Act, and requires detailed project agreements.

What This Bill Does

It adds recapture provisions so incentives may be taken back if the incentivized company or a related company engages in human trafficking or violates the Fair Labor Standards Act (including federal child labor provisions). It requires project agreements to spell out specifics like project location, activities, investment, employment, wages, incentive amounts and periods, and recapture terms. It also gives the Governor authority to adjust incentive amounts or durations to ensure state revenues exceed incentives, with the act taking effect on October 1, 2024.

Who It Affects

• Incentivized companies and their subsidiaries, suppliers, or related entities—potentially facing recapture of incentives if violations occur.
• The State of Alabama and its taxpayers—potentially benefiting from reduced incentives or recaptured funds to ensure state revenues exceed the incentives.

Key Provisions

• Recapture of incentives: Incentives awarded to an incentivized company or a related company may be recaptured if they or their subsidiaries, suppliers, or related entities engage in human trafficking violations or violate the Fair Labor Standards Act (including federal child labor provisions).
• Detailed project agreements: The project agreement must include: company name; project location; activity; which incentives are granted; capital investment and its timeline; number of employees; anticipated wages; incentive period start dates/conditions; lengths of incentive periods; any annual or aggregate incentive limits; recapture provisions; assignability; and other required terms.
• Recapture and default terms: The agreement must cover provisions governing the recapture of incentives should the company default on obligations or engage in prohibited activities.
• Governor's adjustment power: The Governor may decrease the amounts and durations of incentives to ensure the state's anticipated revenues exceed the tax incentives.
• Effective date: The act becomes effective on 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