HB620 Alabama 2025 Session

Summary

Primary Sponsor

Rex ReynoldsRepresentative

Republican

Session

2025 Regular Session

Title

Relating to the Tax Incentive Reform Act; to authorize a public industrial authority to grant abatements for international headquarters of publicly traded companies

Summary

HB620 would let a public industrial authority grant ad valorem tax abatements to retain the international headquarters of publicly traded companies in Alabama under the Tax Incentive Reform Act of 1992.

What This Bill Does

The bill creates a new Section 40-9B-14 authorizing incentives for an international headquarters facility owned by a publicly traded company operating in Alabama. To be eligible, the company must have at least 300 Alabama employees, have invested at least $200 million in Alabama, be located in a designated research park for at least 20 years, sign a satisfactory inducement agreement, and be in a municipality with more than 210,000 people. If eligibility and prior incentives are met, the authority may grant an ad valorem tax abatement—excluding education taxes—of up to $100,000 per year or for more than 10 years, to retain the facility. The act takes effect immediately upon passage.

Who It Affects

• Publicly traded companies with international headquarters in Alabama that meet the eligibility criteria (staffing, investment, location, and agreement requirements) and may receive tax abatements.
• Local municipalities and public industrial authorities in Alabama that oversee eligibility determinations and grant the abatements (including municipalities with populations over 210,000).

Key Provisions

• Adds Section 40-9B-14 to authorize a public industrial authority to offer incentives to retain an international headquarters facility of a publicly traded company located in Alabama.
• Defines 'international headquarters facility' as an industrial or research enterprise accompanied by the company's international headquarters in Alabama, with operations in other nations, more than 100 total employees, and at least 300 Alabama employees.
• Eligibility criteria (b): retention must be in citizens' best interest; at least 300 Alabama full-time employees; at least $200 million in total capital investment in Alabama; located in a designated research park for at least 20 years; execution of a satisfactory inducement agreement; and the local jurisdiction must be a municipality with population over 210,000.
• Abatement terms (c): if prior incentives have expired and criteria are met, the authority may grant an ad valorem tax abatement excluding education taxes up to $100,000 per year or for a period exceeding 10 years.
• Effective date: the act becomes effective immediately.

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