House Bill 393 Alabama 2026 Session

Updated Feb 17, 2026

Notable

Summary

Primary Sponsor: Kelvin LawrenceRepresentative
Democrat
Session: 2026 Regular Session
Title: Tax abatement and tax incentive programs, NAICS Code references and definitions updated to latest terms
Summary: HB393 updates Alabama's tax abatement and incentive laws by removing references to an outdated plan, aligning with the Alabama Jobs Act, and updating NAICS classifications to the 2022 version.
What This Bill Does
It removes references to the Accelerate Alabama Strategic Economic Development Plan in sections governing research and development corridors, grants, and tax abatements and incentives. It updates NAICS codes to the 2022 version and broadens definitions to include new eligible activities and project types (such as data processing centers, renewable energy facilities, and headquarters). It aligns these provisions with the Alabama Jobs Act, updating related language and criteria. It also makes nonsubstantive, technical revisions to update code language to current style and sets an effective date of June 1, 2026.

Who It Affects
Private businesses and developers pursuing tax abatements or incentives, including those developing industrial or research enterprises like data centers, HQ facilities, and renewable energy facilities, whose eligibility and project classifications would be updated.
State and local government agencies and economic development authorities (e.g., Department of Revenue, ADECA, public authorities) that administer development programs and tax incentives, which will implement the updated definitions and procedures.

Key Provisions
Remove references to the outdated Accelerate Alabama Strategic Economic Development Plan and align with the Alabama Jobs Act.
Update NAICS code references to the 2022 NAICS and broaden definitions to include new eligible activities and project types (e.g., data processing centers, renewable energy facilities, headquarters).
Include nonsubstantive, technical revisions to update code language to current style.
Establish June 1, 2026 as the act's effective date.

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