SB331 Alabama 2024 Session

Summary

Primary Sponsor

Kirk HatcherSenator

Democrat

Session

Regular Session 2024

Title

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

Summary

SB331 preserves eligibility for Alabama incentive programs by aligning state rules with the federal New Markets Tax Credit census tract designations and creates a new Alabama Innovation Corporation to oversee innovation funding and programs.

What This Bill Does

It updates several Alabama laws to use federal NMTC census tract designations for qualifying projects under the Growing Alabama Act, Innovating Alabama Act, Alabama Jobs Act, and Innovate Alabama, ensuring existing communities stay eligible after the NMTC map changes on Sept 1, 2024. It defines what it means for a company to be 'underrepresented' and outlines who can benefit from targeted investments and credits. It establishes the Alabama Innovation Corporation as a public entity with broad powers to fund, manage, and promote innovation programs, including accelerators, research and development centers, workforce initiatives, and various investments, with funding from a dedicated Alabama Innovation Fund and related authorities. It also creates an advisory committee to guide implementation and requires conflict-of-interest safeguards and accountability for these activities.

Who It Affects

• Communities that are currently eligible for state incentives but would become ineligible under the revised NMTC map will continue to qualify.
• Underrepresented individuals and businesses (primarily women or African American) that meet size, ownership, and revenue criteria for participation in incentive programs.
• Local economic development organizations seeking funding to address site inadequacies, infrastructure, or related improvements.
• Universities, private sector partners, and other economic development entities that will interact with the Alabama Innovation Corporation and implement innovation-focused programs.

Key Provisions

• Amends sections 40-18-376.4, 40-18-417.2, 41-10-801, 41-10-804, and 41-10-842 to tie eligible projects to the federal New Markets Tax Credit census tract designations and protect existing communities’ eligibility despite NMTC map changes.
• Defines 'underrepresented company' and 'underrepresented person' (women or African American) with criteria for eligibility, including ownership, control, size, and revenue thresholds, to access incentives and credits.
• Creates the Alabama Innovation Corporation as a public corporation with broad powers to fund, invest, manage property, contract, enter agreements, and promote innovation-related programs and incentives; establishes Alabama Innovation Fund as a funding source and enables investments intended to grow an innovative economy.
• Authorizes a wide range of 'eligible investments' (including bank deposits, U.S. government securities, certain federal agency obligations, repurchase agreements, insured time deposits, and other investments deemed to grow innovation).
• Establishes an advisory committee to guide implementation, with diverse and inclusive membership; committee has no legal authority over board actions and meetings can be conducted via remote participation.
• Gives the board authority to contract with economic development and innovation entities, require reporting, and reimburse overhead only if directly related to fulfilling agreements.
• Allows project agreements and opportunities for accelerators, workforce development, and programs designed to support innovation, including criteria that programs may require an economic impact report and conflict-of-interest documentation.
• Effective date set for 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