HB626 Alabama 2026 Session

Summary

Primary Sponsor

Andy WhittRepresentative

Republican

Session

2026 Regular Session

Title

Tax increment districts, Major 21st Century Manufacturing Zone allowed to be located within a tax increment district without regard to size of district and further provides for use of ad valorem tax revenues collected within a district

Summary

HB626 allows a Major 21st Century Manufacturing Zone to be located inside a tax increment district without size limits and lets the district's ad valorem taxes reimburse pre-creation land costs in the Zone.

What This Bill Does

It changes the law to allow a Major 21st Century Manufacturing Zone to be located inside a tax increment district regardless of the district's size. It lets ad valorem tax revenues collected within the district be used to reimburse a public entity for land purchases in the Zone made before the district's creation, if the entity recites its intent to reimburse from future ad valorem taxes. It defines the Major 21st Century Manufacturing Zone with criteria including size and investment, and includes nonsubstantive technical updates to the code. The act takes effect immediately.

Who It Affects

• Local governments (municipalities and counties) that create or manage tax increment districts, as they can include a Major 21st Century Manufacturing Zone and use district tax revenues to reimburse pre-creation land costs.
• Property owners and taxpayers within a tax increment district, since ad valorem tax dollars within the district may be used to fund zone-related costs.
• Developers and businesses planning investments in sectors like automotive, aviation, medical, semiconductor, and related fields that could qualify as a Major 21st Century Manufacturing Zone.

Key Provisions

• Allows Major 21st Century Manufacturing Zone to be located within a tax increment district without regard to the district's size.
• Permits ad valorem tax revenues collected within the tax increment district to reimburse costs incurred by a public entity to acquire land within the Major 21st Century Manufacturing Zone prior to the creation of the tax increment district, provided the local governing body recites its intent to reimburse from future ad valorem taxes.
• Defines Major 21st Century Manufacturing Zone as at least 250 contiguous acres, suitable for targeted manufacturing facilities, and with anticipated capital expenditures of at least $100,000,000.
• Includes nonsubstantive technical revisions to update existing code language to current style.
• The act becomes effective immediately.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Apr 1, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development