HB435 Alabama 2025 Session

Summary

Primary Sponsor

Andy WhittRepresentative

Republican

Session

2025 Regular Session

Title

Economic development, references to outdated economic development plan and North American Industry Classification System Codes updated

Summary

HB435 updates Alabama economic development incentives by removing outdated plan references, updating NAICS codes to 2022, and expanding what counts as an industrial or research enterprise under the Alabama Jobs Act.

What This Bill Does

The bill removes references to the outdated Accelerate Alabama Strategic Economic Development Plan and aligns related laws with the Alabama Jobs Act. It updates NAICS code references to the 2022 edition to reflect current industry classifications. It broadens the definition of industrial or research enterprise to include data processing centers, renewable energy facilities, headquarters, tourism destinations, and other new activity types, and sets rules for qualifying projects including investment thresholds, job creation, and maximum tax abatement periods.

Who It Affects

• Private sector developers and private users who plan qualifying projects; they may be eligible for tax abatements and other incentives if their projects meet the new definitions and thresholds.
• Local governments, counties, municipalities, and public authorities that issue bonds and approve abatements; they must follow the updated approval processes and oversight provisions when granting abatements.

Key Provisions

• Remove references to the Accelerate Alabama Strategic Economic Development Plan and align related laws with the Alabama Jobs Act.
• Update NAICS code references to the 2022 edition to reflect current industry classifications.
• Expand the definition of industrial or research enterprise to include data processing centers, renewable energy facilities, headquarters, research facilities, tourism destinations, and other listed activities.
• Establish qualifying project criteria requiring at least $2 million in capital expenditures and that the project predominantly involves an approved activity, with allowances for ancillary costs.
• Set job creation requirements for qualifying projects, with different thresholds based on activity and potential extraordinary circumstances.
• Specify maximum tax abatement periods of up to 10, 20, or 30 years depending on project type and investment levels, and tie these to the duration of the investment.
• Direct abatements of ad valorem taxes and related taxes to educational purposes; restrict noneducational ad valorem tax abatements in line with the act.
• Require local governing bodies to adopt resolutions approving abatements and outline oversight by the Department of Revenue and Department of Commerce.

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

Subjects

Economic Development