Senate Bill 291 Alabama 2026 Session

Summary

Primary Sponsor

Merika ColemanSenator

Democrat

Session

2026 Regular Session

Title

Tax incentives; reimbursement for violation of labor and trafficking laws provided for

Summary

SB291 would bar entities that violate human trafficking or federal child labor laws from receiving Alabama Jobs Act incentives and require repayment of incentives already granted, while updating the approval process and recapture rules.

What This Bill Does

The bill would disqualify violators from receiving economic development incentives under the Alabama Jobs Act. It would require the violator to reimburse the state and local governments for the value of incentives already awarded, starting from the date the violation is found liable. It would require the Secretary of Commerce to verify that an entity and its affiliates do not engage in such violations before qualifying for incentives, and it would update the process and terms for approved projects, including recapture rules if a violation occurs. The act would take effect on June 1, 2026.

Who It Affects

• Companies applying for Alabama Jobs Act incentives would face new disqualification and potential repayment obligations if they or their subsidiaries/suppliers violate trafficking or child labor laws.
• State and local governments would be able to recover the cost of incentives previously awarded to violators, and would oversee the updated approval and verification process.

Key Provisions

• Prohibits awarding economic development incentives under the Alabama Jobs Act to entities that violate human trafficking laws or federal child labor laws, and requires reimbursement of those incentives if a violation occurs.
• Amends Code sections 40-18-373 and 40-18-374 to require the Secretary of Commerce to verify that an entity and its affiliates do not engage in trafficking or child labor violations before qualifying for incentives; establishes the process for designation as an approved company.
• Creates criteria for approved projects including ensuring the project will not reduce Alabama exports and that anticipated state revenues from the project will cover the incentives provided.
• Requires a detailed project agreement for incentives, outlining project location, activities, incentive amounts, capital investment, investment timelines, number of employees, wage levels, incentive periods, and recapture terms.
• Provides recapture provisions to reclaim all or part of the incentives if the company, its subsidiaries, or suppliers engage in trafficking or child labor violations.
• Effective date: June 1, 2026.

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