House Bill 594 Alabama 2026 Session

Summary

Primary Sponsor

Kelvin LawrenceRepresentative

Democrat

Session

2026 Regular Session

Title

Creates the Rural Industry Reshoring and Reinvestment Act; creates the Rural Reshoring Tax Credit Program; creates Rural Industrial Site Development Grant Program

Summary

Establishes the Rural Industry Reshoring and Reinvestment Act to attract manufacturing and reshoring investments to rural Alabama through tax credits, site development grants, and job-creation incentives in designated Rural Industry Opportunity Zones.

What This Bill Does

It would create three incentive programs: the Rural Reshoring Tax Credit for eligible businesses locating in designated zones, the Rural Industrial Site Development Grant Fund to improve rural sites, and a Job Creation Performance Grant program to reward new rural jobs. Eligible manufacturing or logistics firms could receive a refundable tax credit equal to 5% of qualifying payroll for up to 10 years (with a $10 million annual cap) and may earn a 10% bonus on qualifying investments if they replace an imported supply chain. The state would also provide grants for site prep (grading, roads, utilities, broadband, permitting) and pay $3,000 per new full-time job, with annual caps, plus designation and updates of Rural Industry Opportunity Zones."

Who It Affects

• Eligible manufacturing or logistics businesses that locate or expand in Rural Industry Opportunity Zones would access tax credits and potential investment bonuses.
• Rural communities, local governments, regional development authorities, and economic development nonprofits would receive funds and oversight authority for site development and job-creation grants.

Key Provisions

• Establishes the Rural Industry Reshoring and Reinvestment Act.
• Creates the Rural Reshoring Tax Credit Program: refundable credit, 5% of qualifying payroll for up to 10 years, requires at least 15 full-time jobs with median wage at/above county median, $10M annual cap, 2027–2036 availability, nontransferable, 5-year carryforward, supply chain localization bonus of 10% on qualifying investment, rules by Department of Revenue.
• Creates the Rural Industrial Site Development Grant Fund and Program: grants for site grading, roads, utilities, broadband, environmental permitting; funds awarded to local governments, regional development authorities, or economic development nonprofits.
• Creates Job Creation Performance Grants: $3,000 per full-time job, cap of $10M per year, rules for application and oversight.
• Designates Rural Industry Opportunity Zones and updates list every three years.
• Effective date: January 1, 2027.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 10, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development; Taxation & Revenue