House Bill 596 Alabama 2026 Session

Summary

Primary Sponsor

Marilyn LandsRepresentative

Democrat

Session

2026 Regular Session

Title

Economic Development; small towns, programs established to fund businesses, reuse of properties, and other grants, administered by Alabama Department of Economic and Community Affairs; tax credit established

Summary

HB596 creates the Main Street Revival Act to revitalize small-town downtowns with grants, tax credits, and technical help for redevelopment and entrepreneurship, administered by ADECA.

What This Bill Does

The bill would establish several grant programs to support startups, reuse vacant properties, preserve historic buildings, and mentor small businesses in eligible areas. It would also provide tax credits for renovations and funding to help local governments modernize planning and zoning to encourage mixed-use development and faster permitting. ADECA would administer these programs, and an effective date of January 1, 2027 is set.

Who It Affects

• Local entrepreneurs and small businesses in eligible areas would receive microenterprise grants, size-limited to $5,000 to $25,000, plus access to incubator/pop-up programs and mentorship.
• Property owners, developers, historic property owners, and local governments in eligible areas would be eligible for renovation tax credits (25% of eligible renovation costs) and related preservation/rehabilitation grants, as well as planning and zoning modernization assistance.

Key Provisions

• Establishes the Main Street Revival Act to revitalize downtowns in municipalities with populations under 25,000 through grants, technical assistance, and regulatory updates administered by ADECA.
• Defines eligible area (small-town commercial corridors) and eligible property (vacant/underutilized or convertible commercial structures in those areas).
• Main Street Microenterprise Grant Program: grants $5,000 to $25,000 for leasehold improvements, equipment, signage, or startup inventory; requires a business plan and matching funds; ADECA may adopt implementing rules.
• Historic Storefront Preservation Incentive Grant Program: state grants and technical assistance for preservation/modernization of historic properties (must be 50+ years old); eligible for façade, structural upgrades, and ADA compliance; priority to heritage/tourism projects; rules may be adopted.
• Business Incubator and Pop-Up Support Grant Program: supports temporary retail activations and shared spaces; grants available to nonprofits, chambers, and municipal development agencies; funds can be used for pop-ups, maker hubs, and mentorship.
• Local Planning and Zoning Modernization Assistance Program: offers technical assistance and matching grants to update zoning and land use to support mixed-use redevelopment and small business growth; promotes reduced parking minimums and streamlined permits.
• Rehabilitation tax credit: 25% of eligible renovation costs for an eligible property; credit nonrefundable, nontransferable, and carried forward up to five years; cannot exceed tax liability; requires rules and proof of renovation; audits permitted by the Department of Revenue.
• 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