SB370 Alabama 2026 Session

Summary

Primary Sponsor

Steve LivingstonSenator

Republican

Session

2026 Regular Session

Title

Tax increment districts, Major 21st Century Manufacturing Zone allowed to be located within a tax increment district without regard to size of district and further provides for use of ad valorem tax revenues collected within a district

Summary

SB370 lets a Major 21st Century Manufacturing Zone be placed inside a tax increment district regardless of the district’s size and allows ad valorem tax revenues from the district to reimburse pre-creation land costs in that Zone.

What This Bill Does

It amends Alabama law to allow a Major 21st Century Manufacturing Zone to be located within a tax increment district without regard to the district’s size. It also permits the ad valorem tax revenues collected in the district to be used to reimburse a public entity for land acquisition costs incurred to assemble land within the Major Zone before the district’s creation. The bill sets criteria for what counts as a Major Zone (minimum 250 contiguous acres, eligibility for specific industries, and at least $100 million in anticipated capital expenditure) and updates related project-cost provisions and language. It also makes nonsubstantive, technical revisions to modernize the code language.

Who It Affects

• Local governments (counties and municipalities) that create or manage tax increment districts, enabling inclusion of a Major Zone inside the district and allowing reimbursement of pre-creation land costs from district tax revenues
• Deferred tax recipients and other taxing authorities within or affected by the district, who will participate in and be notified about district boundaries, project plans, and revenue allocations for Major Zone-related costs

Key Provisions

• Allows a Major 21st Century Manufacturing Zone to be located within a tax increment district without regard to district size
• Allows ad valorem tax revenues collected within the district to reimburse costs incurred by a public entity to acquire land within the Major Zone prior to the district’s creation
• Defines Major 21st Century Manufacturing Zone as areas aggregating at least 250 contiguous acres, suitable for specified industries, with anticipated minimum $100 million in capital expenditure
• Includes technical, nonsubstantive revisions to update code language and clarifies that project costs for the Major Zone can include land acquisition, public works, and related costs within the district

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Apr 1, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development