House Bill 551 Alabama 2026 Session

Summary

Primary Sponsor

Thomas JacksonRepresentative

Democrat

Session

2026 Regular Session

Title

Creates the Steel and Advanced Manufacturing Competitiveness Act; creates Steel Industry Relief and Investment Grant Program; creates the Manufacturing Innovation and Modernization Tax Credit

Summary

HB551 creates a Steel and Advanced Manufacturing Competitiveness Act to bolster Alabama's steel and heavy manufacturing sectors through grants, a tax credit, procurement preferences, export support, and a new trade monitoring board.

What This Bill Does

Establishes the Steel Industry Relief and Investment Grant Program to help eligible Alabama manufacturers affected by trade disruptions with working capital, labor retention, or capital improvements (up to $10 million per year). Creates the Manufacturing Innovation and Modernization Tax Credit, offering a 20% credit on qualifying investments with per-issuer and annual caps and a multi-year carryforward. Requires state contracts to favor domestically produced steel and components, with an option to waive if domestic materials aren’t available or are overpriced. Creates the Advanced Manufacturing Export Expansion Initiative to assist exporters with compliance, marketing, and mission coordination, prioritizing firms hurt by retaliatory tariffs. Establishes the Industrial Trade Vulnerability Monitoring Board to monitor trade issues, identify risks, and report annually to the Governor and Legislature.

Who It Affects

• Eligible manufacturers in Alabama (steel producers or industrial manufacturers) who may receive grants under the Steel Industry Relief and Investment Grant Program.
• Taxpayers investing in qualifying advanced machinery, automation, or domestic sourcing who may claim the Manufacturing Innovation and Modernization Tax Credit (subject to caps).
• State infrastructure and construction contractors and projects, which must include domestically produced steel and manufactured components where applicable.
• Alabama Department of Commerce, the Alabama Department of Revenue, and the Alabama Department of Finance in implementing and administering the programs.
• Export-focused manufacturers and firms seeking international market expansion who can use the Advanced Manufacturing Export Expansion Initiative services.
• Users of industry policy insights who benefit from annual reporting by the Industrial Trade Vulnerability Monitoring Board.

Key Provisions

• Establishes the Steel Industry Relief and Investment Grant Program, administered by the Department of Commerce, with up to $10,000,000 in grants per calendar year for eligible manufacturers affected by trade disruptions.
• Creates the Manufacturing Innovation and Modernization Income Tax Credit: 20% of qualifying investments, up to $1,000,000 per taxpayer per year, with a $10,000,000 annual aggregate cap; credit is refundable, nontransferable, and may be carried forward up to five years.
• Effective January 1, 2027 for the 2027-2029 tax years, with a limit that no business may claim the credit for more than three tax years; the Department of Revenue to adopt implementing rules.
• Requires a procurement preference for domestically produced steel and manufactured components in certain infrastructure/contracts, with criteria set by the Department of Finance; allow waivers if domestic materials are unavailable or unreasonably priced.
• Creates the Advanced Manufacturing Export Expansion Initiative to assist exporters with export compliance, logistics, international marketing, and trade mission coordination, prioritizing firms affected by retaliatory tariffs.
• Establishes the Industrial Trade Vulnerability Monitoring Board (five members appointed by the Governor) to monitor trade developments, identify sector risks, and annually report recommendations to the Governor and Legislature.
• The act becomes effective July 1, 2027.

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