House Bill 346 Alabama 2026 Session

Summary

Primary Sponsor

Neil RaffertyRepresentative

Democrat

Session

2026 Regular Session

Title

Tax incentives; reimbursement for violation of labor and trafficking laws provided for

Summary

HB346 would bar entities that violate human trafficking or federal child labor laws from receiving Alabama Jobs Act incentives and require them to reimburse the state and local governments for incentives already granted.

What This Bill Does

If enacted, the bill would disqualify any entity found to engage in human trafficking or federal child labor violations from receiving economic development incentives under the Alabama Jobs Act. It would require the violator to reimburse the state and local governments for the cost of incentives granted, dating from the time of the violation. The bill also changes how incentives are approved by requiring verifying compliance before qualification and adds technical updates to the state codes. It includes provisions for recapturing incentives if violations occur and for updating language to current code style.

Who It Affects

• Entities applying for or receiving Alabama Jobs Act incentives; they could be disqualified and must reimburse incentives if they violate human trafficking or federal child labor laws.
• State and local governments that provide incentives; they would be able to recapture costs and adjust incentive programs accordingly.

Key Provisions

• Prohibits entities that engage in human trafficking or federal child labor violations from receiving Alabama Jobs Act incentives.
• Requires the violator to reimburse the state and local governments for the cost of any incentives received from the date of guilt/liability.
• Amends Sections 40-18-373 and 40-18-374 to require verification by the Secretary of Commerce before incentives are approved and to define the project agreement terms and recapture provisions if violations occur.
• Includes recapture provisions for tax incentives if the approved company, its subsidiaries, or suppliers engage in prohibited activities.
• Effective date set for 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

Economic Development