Senate Bill 214 Alabama 2026 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

2026 Regular Session

Title

Amend the Sweet Home Alabama Tourism Investment Act; increase supplemental tax rebate; require certification of project costs

Summary

SB214 would modify the Sweet Home Alabama Tourism Investment Act by adding a supplemental $2.5 million rebate, requiring independent CPA certification of project costs, and tightening project eligibility and cost rules.

What This Bill Does

SB214 makes the annual $2.5 million supplemental rebate available in addition to the initial rebate for qualifying certified tourism destination projects. It requires approved companies to document actual project costs with certification by an independent CPA, and it bars related-party charges from counting as eligible costs. It broadens and clarifies which projects qualify, sets investment thresholds and caps, and preserves a 10-year rebate window with per-project and annual limits. It continues to fund rebates through the Department of Revenue, with payments twice yearly and completion deadlines, while allowing rebates to be transferable to future owners.

Who It Affects

• Approved tourism project developers and investors, who would be eligible for rebates if their projects meet investment and cost-certification requirements, with potential for a supplemental $2.5 million and up to $7.5 million total under certain rules.
• State and local governments (including the Alabama Department of Revenue, Alabama Tourism Department, municipalities, and targeted counties), which would oversee applications, certify costs, administer the rebate program, and manage shared funding and local-government requirements (e.g., 20% municipal tax share and 10% targeted-county set-aside).

Key Provisions

• Adds a supplemental onetime $2.5 million rebate for one qualifying project per calendar year with a minimum of $75 million in capital investment.
• Requires approved projects to certify actual costs through an independent certified public accountant; costs must be bona fide, third‑party, and properly capitalizable; related-party transactions are excluded.
• Expands and defines certified tourism destination projects, including mega projects ($75M investment) and various qualifying types (attractions, resorts, historic districts, marinas, etc.) while restricting certain retail and service categories from rebates.
• Imposes caps and set-asides: a $10 million annual aggregate cap on rebates, with 10% set aside for targeted counties and 20% of rebates to come from municipal taxes; per-project annual rebate cap of $1 million and a 10-year rebate period, with potential additional supplemental rebates up to $7.5 million total for eligible projects.
• Projects must be completed within 3 years of the incentive agreement, with completion defined as when the project opens and starts generating revenue.
• Rebates are administered by the Alabama Department of Revenue and paid from the Tourism Project Sales Tax Incentive Fund, in January and July, offsetting any outstanding state tax obligations first, and are transferable to future owners.
• Certain expansions of existing projects are limited to no more than the lesser of 75% of the original investment or $35 million; certain retail formats are excluded from eligibility.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development; Taxation & Revenue