HB28 Alabama 2026 Session

Updated Feb 17, 2026

Summary

Primary Sponsor: Chip BrownRepresentative
Republican
Session: 2026 Regular Session
Title: Taxation; to establish an income tax credit for oyster shell recycling
Summary: HB28 would create an Alabama income tax credit for restaurants and other eligible entities that donate oyster shells to approved oyster shell recycling programs.
What This Bill Does
It establishes a tax credit equal to the lesser of $1 per 50 pounds of oyster shells donated or $2,000 per tax year, with a total annual cap of $100,000 in credits. Credits are awarded on a first-come, first-served basis and may be claimed beginning in the 2027 tax year and may not be claimed after the 2031 tax year. Donations must be verified with a standardized certificate signed by the restaurant and certified by the approved oyster shell recycling program, and a copy of the certificate must be filed with the tax return; failure to provide the certificate results in automatic denial. The credit can be claimed by corporations, individuals, and pass-through entities, with pass-through credits flowing to partners/mollowers on a pro rata basis, and the credit cannot be transferred or sold to another taxpayer.

Who It Affects
Restaurants and other eligible persons donating oyster shells, who may claim a tax credit against Alabama income tax subject to the program rules and documentation requirements.
Corporations, individuals, and pass-through entities that file Alabama income tax returns and may claim or pass through the oyster shell recycling credit, with the credit non-transferable and limited by caps and timing.

Key Provisions
Credit amount: the lesser of $1 per 50 pounds of oyster shell donated or $2,000 per tax year.
Cap: total credits available cannot exceed $100,000 per calendar year.
Availability window: credits are first-come, first-served and may be claimed from the 2027 tax year through the 2031 tax year (not after 2031).
Certification: a standardized certificate signed by the restaurant and certified by the Oyster Shell Recycling Program is required to substantiate the credit; failure to file the certificate results in automatic denial.
Transferability: credits may not be transferred or sold to another taxpayer.
Claiming: credits for corporations on their corporate tax return; for individuals on their individual return; for pass-through entities, credits pass through to partners/mollowers on a pro rata basis.
Rules and program designation: the Department of Revenue will adopt rules and coordinate with the Commissioner of the Department of Conservation and Natural Resources to designate approved programs.
Effective date: the act becomes effective June 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation & Revenue