House Bill 554 Alabama 2026 Session

Summary

Primary Sponsor

Laura HallRepresentative

Democrat

Session

2026 Regular Session

Title

State Energy Supply and Chemical Trade Stabilization Act established; income tax credit, grant program, and loan program created.

Summary

Establishes a framework to stabilize Alabama's energy and chemical trade through grants, tax credits, loans, and a risk board to counter trade disruptions.

What This Bill Does

It creates three financial programs administered by ADECA: a grant program to support facilities affected by trade disruptions (up to $2 million per calendar year); a refundable 30% income tax credit for qualifying investments (cap of $2 million per year, starting in 2027 and ending in 2031, with carry-forward and a limit of three claim years); and a low-interest loan program up to 30% of qualifying investments. It also establishes the Chemical and Energy Trade Risk Assessment Board (five members) to study vulnerabilities and recommend strategies, with rules to be adopted by ADECA and an effective date of July 1, 2026.

Who It Affects

• Eligible chemical and energy production facilities in Alabama that can receive grants, tax credits, and loans to support domestic production and resilience
• Alabama Department of Economic and Community Affairs (ADECA), which will administer programs and adopt rules
• Feedstock suppliers, input providers, and infrastructure operators (e.g., pipelines, storage, intermodal hubs, port facilities) that may benefit from funded supply-chain improvements
• Workers and communities tied to affected facilities who may benefit from job retention and stronger local economies

Key Provisions

• Establishes the State Energy Supply and Chemical Trade Stabilization Act and defines terms like eligible facilities, feedstock, input, and trade disruption
• Creates the State Energy Supply and Chemical Trade Stabilization Grant Program and Grant Fund to support facilities affected by trade disruptions
• Grant uses include mitigating losses, modifying supply chains, retaining personnel, identifying vulnerable feedstocks, supporting domestic inputs, piloting substitute materials or energy sources, and funding capital improvements to energy and chemical infrastructure (pipeline upgrades, storage expansion, intermodal hubs, port facilities) with an annual grant cap of $2,000,000
• Creates the Reshoring and Domestic Production Income Tax Credit: refundable, equal to 30% of qualifying investments, with a $2,000,000 annual aggregate cap, nontransferable, five-year carry-forward, first claimable in 2027 through 2031 (carry-forwards allowed), and a limit of claims in up to three tax years
• Creates the Reshoring and Domestic Production Loan Program: low-interest loans up to 30% of qualifying investments, administered by ADECA with application rules
• Establishes the Chemical and Energy Trade Risk Assessment Board of five members to evaluate vulnerabilities and recommend countermeasures; board meets annually, issues biennial reports to Governor and Legislature, and members are reimbursed per diem and travel allowances

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