HB607 Alabama 2025 Session

Summary

Primary Sponsor

Thomas JacksonRepresentative

Democrat

Session

2025 Regular Session

Title

Establishes Rural Connectivity and Innovation Act, provides grant program and tax credit in underserved farming communities

Summary

HB607 creates the Rural Connectivity and Innovation Act to fund broadband expansion in underserved farming communities with a state grant program and a tax credit for farmers using broadband-enabled technologies.

What This Bill Does

It establishes a state-funded grant program administered by ADECA to expand high-speed broadband in underserved farming communities, with $50 million appropriated annually and prioritization for public-private partnerships and cooperatives. Grant recipients must show a commitment to serving underserved areas, provide a plan to maintain infrastructure, and participate in reporting, audits, and public awareness efforts; the program ends December 31, 2030. It also creates a nonrefundable Alabama individual income tax credit for farmers adopting broadband-enabled technologies, up to $10,000 per taxpayer, with a $2 million annual cap, carryforward of up to five years, and a limit of claiming credits in up to three tax years, available from 2026 through 2030. The act becomes effective October 1, 2025.

Who It Affects

• Underserved farming communities, which would gain access to high-speed broadband and related economic development opportunities.
• Farmers who adopt broadband-enabled technologies, who may receive a tax credit up to $10,000 per year to offset qualifying broadband-related expenses (subject to limits).
• Public-private partnerships, local governments, and cooperative organizations, which can apply for grants to fund broadband infrastructure projects.
• ADECA, which would administer the grant program, handle grants, reports, audits, and public awareness efforts.
• Taxpayers overall, due to the annual credit cap and rules governing the credit's use.

Key Provisions

• Creates the Rural Connectivity and Innovation Act, naming the act and defining its scope and purposes.
• Section 4: Establishes a state-funded grant program with a $50,000,000 annual appropriation to ADECA for broadband infrastructure in underserved farming communities; grants prioritized for public-private partnerships and cooperative models; eligible applicants include public-private partnerships, local governments, and cooperatives; requires project descriptions and maintaining infrastructure; ADECA adopts rules; annual progress reports and regular audits; public awareness campaigns and training; program repeals on December 31, 2030.
• Section 5: Establishes an Alabama individual income tax credit for farmers adopting broadband-enabled technologies up to $10,000; credits are nonrefundable, not transferable, and can be carried forward up to five years; annual aggregate credit cap of $2,000,000; credits available from 2026 through 2030; an individual may claim credits in at most three tax years; the Department of Revenue may adopt implementing rules.
• Section 6: Effective date set for October 1, 2025.
• Definitions include ADECA, broadband-enabled technologies (e.g., precision farming, smart irrigation, automated machinery), eligible applicants, qualifying expenses, and underserved farming communities.

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

Subjects

Agriculture & Forestry; Economic Development