Senate Bill 370 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 no matter the district's size, and lets the district's tax revenues reimburse pre-district land purchases for the Zone.

What This Bill Does

SB370 amends Alabama law to permit a Major 21st Century Manufacturing Zone to be located within a tax increment district regardless of the district's size. It authorizes using ad valorem tax revenues collected in the district to reimburse public entities for land acquisitions within the Zone prior to the district's creation. It also sets criteria for the Zone (size, eligible industries, and minimum capital expenditure) and adjusts district duration (up to 30 years, or up to 35 years for Zone-related cases), along with required project plans and financing rules.

Who It Affects

• Local governing bodies (cities and counties) that create or manage tax increment districts, who gain authority to include a Major Zone inside districts of any size and to use district tax revenues to reimburse pre-district land purchases within the Zone
• Deferred tax recipients (taxing authorities that receive future tax increments), who must be notified and may participate in boundary discussions and project planning through designated representatives

Key Provisions

• Major 21st Century Manufacturing Zone defined as at least 250 contiguous acres, suitable for automotive, aviation, medical, pharmaceutical, semiconductor, computer/electronics, energy conservation, cyber technology, or biomedical manufacturing facilities, with an anticipated minimum of $100 million in capital expenditure
• Zone may be located within a tax increment district without regard to the district's size
• Ad valorem tax revenues collected within the district may be used to reimburse public entities for land acquisition costs within the Zone prior to the district's creation
• District duration rules set at up to 30 years, or up to 35 years if the district includes a Major Zone or an enhanced use lease area, subject to amendments
• Requires a detailed project plan with estimated costs, financing methods, maps, relocation plans, and conformity with zoning/master plans, plus notices and meetings with deferred tax recipients
• Tax increment fund collects district increments and pays for project costs and district obligations; after obligations are paid, remaining funds are distributed to state, counties, municipalities, and school districts
• Presumption that property acquired or leased within one year before district creation was done in contemplation of the district (rebuttable by showing a different purpose)

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development