AlabamaHB2432025 Regular SessionHouse

To unabate a portion certain state ad valorem and construction related transaction taxes to deposit into the Alabama Development Fund.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

Alabama creates dedicated economic development fund

Beginning October 1, 2025, the law creates the Alabama Development Fund, managed by the Department of Commerce. It receives taxes collected under this law and can accept legislative funding, gifts, grants, contributions, and other designated money. General Fund money, Education Trust Fund money, and money constitutionally reserved for another purpose are excluded. Commerce can spend the money for economic development only with legislative approval and required budget controls. Unspent money carries forward to the next fiscal year.

Alabama shares business tax-break records securely

Beginning June 1, 2026, Revenue must share covered business tax-abatement records with Commerce. These include applications, resolutions, agreements, and amendments under Sections 40-9B-4 or 40-9G-2. Commerce can use them only for economic development planning and program review. Taxpayer records remain confidential, and Commerce must guard against unauthorized disclosure.

Smaller tax breaks for qualifying businesses

Businesses receiving tax abatements under Sections 40-9B-4 or 40-9G-2 starting June 1, 2026, must pay some previously waived taxes. During the exemption period, they must pay 1.0 mill of state noneducation property tax. A 0.75% state construction-related transaction tax rate also applies to covered sales involving private-use industrial property. These collections go to the Alabama Development Fund. Agreements granted before June 1, 2026, remain unchanged.

Sponsors & Cosponsors

Sponsor

Andy Whitt
Republican • House

Cosponsors

Patrick Sellers
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 253 • No: 2

Senate vote • 3/18/2025

Third Reading in Second House

Yes: 27 • No: 0

Senate vote • 3/18/2025

Motion to Read a Third Time and Pass - Adopted Roll Call 324

Yes: 27 • No: 0

House vote • 2/13/2025

Motion to Read a Third Time and Pass - Adopted Roll Call 141

Yes: 100 • No: 2

House vote • 2/13/2025

Third Reading in House of Origin

Yes: 99 • No: 0

Actions Timeline

Enacted
4/3/2025House
Signature Requested
3/19/2025Senate
Delivered to Governor
3/19/2025House
Delivered to Governor
3/19/2025House
Delivered to Governor
3/19/2025House
Third Reading in Second House
3/18/2025Senate
Motion to Read a Third Time and Pass - Adopted Roll Call 324
3/18/2025Senate
Ready to Enroll
3/18/2025House
Enrolled
3/18/2025House
Read for the Second Time and placed on the Calendar
2/20/2025Senate
Reported Out of Committee Second House
2/19/2025Senate
Reported Out of Committee Second House
2/19/2025Senate
Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development
2/18/2025Senate
Pending Committee Action in Second House
2/18/2025Senate
Third Reading in House of Origin
2/13/2025House
Motion to Read a Third Time and Pass - Adopted Roll Call 141
2/13/2025House
Reported Out of Committee House of Origin
2/12/2025House
Read for the Second Time and placed on the Calendar
2/12/2025House
Read for the first time and referred to the House Committee on Economic Development and Tourism
2/11/2025House
Pending Committee Action in House of Origin
2/11/2025House

Bill Text

As Introduced
PDF
Enrolled
PDF

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