HB548 Alabama 2025 Session

Summary

Primary Sponsor

Matt WoodsSenator

Republican

Session

2025 Regular Session

Title

Taxation; establishes Alabama Broadband Investment Maximization Act; exempts ADECA project funded or administered purchases from sales and use tax

Summary

HB548 would create a temporary state tax exemption for purchases of broadband equipment and supplies used in ADECA-funded projects to build or expand broadband and Internet access.

What This Bill Does

It exempts the state sales and use taxes on gross receipts from selling equipment and related items used to provide broadband services or Internet access for projects funded or administered by ADECA. The exemption applies only to purchases made for those ADECA projects, and the Department of Revenue would issue rules to implement it. It does not apply to consumer electronics like smartphones, computers, tablets, or certain computer-grade modems and WiFi routers. The exemption runs from September 1, 2025, to August 31, 2028, and the act becomes effective June 1, 2025; local county or municipal taxes are not exempt unless the local government approves, and the definitions provided in the act govern what counts as eligible equipment and services.

Who It Affects

• Vendors and suppliers of broadband equipment and related supplies sold to ADECA-funded projects, who would see state sales and use tax exemptions on those eligible sales.
• ADECA-funded project operators and local government entities involved in broadband projects, who would benefit from reduced upfront equipment costs but must navigate local tax rules and the sunset timing.

Key Provisions

• Establishes the Alabama Broadband Investment Maximization Act and designates it as the law for the tax exemption.
• Exempts gross receipts from the sale of broadband equipment, machinery, software, ancillary components, and related items used to provide broadband services or Internet access from state sales and use taxes for purchases under ADECA-funded or ADECA-administered projects.
• Excludes consumer electronics (e.g., smartphones, computers, tablets) and computer-grade modems/routers from the exemption.
• Applies the exemption only to ADECA-funded or ADECA-administered purchases and allows the Department of Revenue to adopt rules to implement the exemption.
• Does not apply to county or municipal taxes unless an approved local resolution or ordinance provides otherwise.
• Defines key terms (Broadband Communications Services, Equipment, Internet Access) and clarifies what counts as eligible equipment and services.
• Provides a sunset window, with the exemption available from September 1, 2025, to August 31, 2028, and establishes an effective date of June 1, 2025.

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