House Bill 399 Alabama 2026 Session

Summary

Primary Sponsor

Leigh HulseyRepresentative

Republican

Session

2026 Regular Session

Title

Tax abatements for data processing centers, exemption period limited, collection of certain taxes on purchases required, sunset date extended

Description

Under the Tax Incentive Reform Act, abatements of noneducational ad valorem taxes, construction related transaction taxes, and certain recording taxes are authorized for industrial development purposes, including for the development of data processing centers.

This bill would limit the maximum exemption period for abatements available for data processing centers to 20 years beginning January 1, 2027, would require data processing centers to pay state sales and use taxes on purchases made by certain large data processing centers beginning January 1, 2027, and provide for the distribution of proceeds from the taxes, and would extend the sunset date for data processing center abatements.

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Subjects

Taxation & Revenue