SB22 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Merika ColemanSenator
Democrat
Session: 2025 Regular Session
Title: Alabama Jobs Act, further provides for recapture of incentives
Summary: SB22 would add recapture rules to the Alabama Jobs Act, allowing the state to claw back incentives if the recipient defaults on the project agreement or commits human trafficking or FLSA child labor violations.
What This Bill Does
The bill amends the Alabama Jobs Act to require a project agreement detailing how incentives are awarded and what must be done to qualify. It adds recapture provisions so the state can take back all or part of the incentives if the approved company defaults or is found guilty of human trafficking laws or federal child labor provisions under the Fair Labor Standards Act. It gives the Governor power to reduce the amounts or durations of incentives to ensure state revenues exceed the incentives, with an effective date of October 1, 2025.

Who It Affects
Incentivized companies receiving Jobs Act incentives, who could have those incentives recaptured or reduced if they default on commitments or violate human trafficking or child labor laws.
State government and Alabama taxpayers, who would oversee the incentive program, enforce recapture provisions, and manage revenue implications.

Key Provisions
Recapture of all or part of the jobs act incentives if the approved company defaults on its obligations in the project agreement or is found guilty of human trafficking laws or federal child labor provisions of the Fair Labor Standards Act.
A project agreement between the Governor and the incentivized company must include: project name, location, activity, incentives to be granted, capital investment, investment timelines, number of employees, anticipated wages, incentive period dates and lengths, and limitations on incentives.
Provisions governing recapture, assignment ability, and other terms required by law or by the Governor.
The Governor may decrease the amounts and durations of incentives to ensure anticipated state revenues exceed the incentives.
The act becomes effective October 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