House Bill 548 Alabama 2026 Session

Summary

Primary Sponsor

Kelvin LawrenceRepresentative

Democrat

Session

2026 Regular Session

Title

Creates the Automotive Supply Chain Resilience and Expansion Act; creates Automotive Tariff Relief Grant Program; creates the Supply Chain Relocation and Expansion Tax Credit; creates the Export Market Diversification Program

Summary

HB548 creates the Automotive Supply Chain Resilience and Expansion Act to support Alabama's automotive sector against tariff disruptions through grants, tax credits, loans, export help, and a new task force.

What This Bill Does

It sets up four programs to help the automotive industry cope with tariff-related disruptions: a Tariff Relief Grant Program, a refundable Supply Chain Relocation and Expansion Tax Credit, a Supply Chain Relocation and Expansion Loan Program, and an Export Market Diversification Program. Grants and the tax credit have annual caps of $10 million each, with specific uses and investment limits, and the tax credit lasts for a set period with a three-year per-business limit and a five-year carryforward. The act also creates a low-interest loan program, expands export support, adjusts state procurement rules, and establishes the Automotive Resilience Task Force to monitor federal actions and report findings.

Who It Affects

• Eligible entities (Alabama manufacturers or suppliers) may receive grants, tax credits, and loans to mitigate tariff impacts and support relocation, expansion, or diversification.
• State procurement agencies and domestic suppliers may be affected by new bid scoring and domestic preference adjustments, and may need to adapt procurement practices.
• Export-ready Alabama firms seeking new international markets may access expanded export support services and financing.
• The Alabama Department of Commerce and the Alabama Department of Revenue (and Finance) will administer programs, establish rules, and issue guidelines; the Automotive Resilience Task Force will monitor federal actions and report findings.

Key Provisions

• Creates the Automotive Supply Chain Resilience and Expansion Act and four programs: Automotive Tariff Relief Fund/Grant Program, Supply Chain Relocation and Expansion Tax Credit, Supply Chain Relocation and Expansion Loan Program, and Export Market Diversification Program; also establishes an Automotive Resilience Task Force and adapted procurement provisions.
• Automotive Tariff Relief Grant Program: administered by the Department of Commerce; grants for cost mitigation, inventory diversification, workforce retention, and capital improvement; annual grant cap of $10,000,000; awarded to eligible entities demonstrating hardship due to tariff-related disruptions.
• Supply Chain Relocation and Expansion Tax Credit: refundable; up to 30% of qualifying investment expenditures; annual aggregate credit cap of $10,000,000; nontransferable; carry forward up to five years; effective beginning January 1, 2027 for 2027-2029 tax years; businesses limited to claiming the credit for no more than three tax years; Department of Revenue to adopt administration rules.
• Supply Chain Relocation and Expansion Loan Program: low-interest loans administered by the Department; loans may cover up to 30% of qualifying investments; rules for applications to be established.
• Export Market Diversification Program: administered by the Department; provides export financing, trade mission subsidies, foreign regulatory compliance support, and market entry consulting; priority given to firms impacted by foreign tariffs.
• State procurement adjustments: procurement agencies may adjust bid scoring, grant temporary domestic preferences, and modify contract requirements to allow alternative materials; implementing guidelines due by October 1, 2026.
• Automotive Resilience Task Force: five members appointed by the Governor; first meeting by September 1, 2026; meetings at least annually; biannual reports to Governor and Legislature on activities and recommendations.
• Effective dates: Sections 1-4 and 6-8 become effective July 1, 2027; Section 5 effective July 1, 2027 contingent on approval of a constitutional amendment authorizing low-interest loans.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 3, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development; Taxation & Revenue