House Bill 359 Alabama 2026 Session

Summary

Primary Sponsor

Andy WhittRepresentative

Republican

Session

2026 Regular Session

Title

Amend the Sweet Home Alabama Tourism Investment Act; increase supplemental tax rebate; require certification of project costs

Summary

HB359 would expand and tighten the Sweet Home Alabama Tourism Investment Act by adding a supplemental rebate, requiring independent cost certification, and clarifying eligible project costs and caps.

What This Bill Does

Adds a supplemental designation of $2,500,000 annually for one qualifying project per calendar year if the project has at least $75,000,000 in capital investment, in addition to the existing rebates. Allows up to $7,500,000 in supplemental rebates per project over its term, with a maximum of $1,500,000 per year. Requires approved projects to certify actual costs through an independent CPA within three months after completion, and to verify costs are bona fide, arm's-length, and properly capitalizable. Keeps the existing rebate framework (10-year period, up to $5,000,000 per project, $10,000,000 annual cap, and a 10% set-aside for targeted or jumpstart counties) and adds standards for administration, including municipal support and transferability.

Who It Affects

• Approved companies proposing certified tourism destination projects would see larger rebates and face cost-certification requirements.
• State and local governments and agencies (the Alabama Tourism Department and the Alabama Department of Revenue) and the independent CPAs who certify costs, along with host municipalities/counties, would administer, fund, and enforce the rebate program.

Key Provisions

• Adds a supplemental designation of $2,500,000 annually for one qualifying project per calendar year if the project has at least $75,000,000 in capital investment, in addition to the existing rebates.
• Allows up to $7,500,000 in supplemental rebates per project over its term, with a maximum of $1,500,000 per year, and exempts the supplemental portion from the standard caps.
• Requires an independent CPA to certify actual project costs within three months after completion, verifying arm's-length, bona fide, capitalizable costs and excluding related-party expenditures.
• Defines eligible and qualifying project types and investment thresholds (mega projects, resorts, attractions, historic or entertainment districts, etc.) and restricts certain retail components from rebates.
• Maintains a 10-year rebate period with a $10,000,000 annual aggregate cap and a 10% set-aside for targeted/jumpstart counties; rebates commence for eligible projects after June 15, 2023 and are paid in January and July, with rebates transferable to future owners and subject to municipal approvals.

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