Title 40

(a) A tax rebate from taxes generated within the tourism destination attraction by the certified tourism destination project over a 10-year period from the commencement of operation, which must occur after June 15, 2023, in the amount of up to five million dollars ($5,000,000) ma…

There is created the Tourism Project Sales Tax Incentive Fund, which may consist of monies appropriated or otherwise made available by the Legislature in any manner, and monies from any other source designated for deposit into such fund, but not include monies subject to a consti…

The department shall report to the Legislature by the second legislative day of the 2026 Regular Session, and annually thereafter, on the overall economic activity, usage, and impact to the state of the tax rebates allowed for tourism destination projects. The information in the …

In no event does Act 2023-34 authorize any electric provider to provide retail electric service outside of its electric service territory as determined under the applicable provisions of Chapter 14 of Title 37. Nothing in Act 2023-34 is intended to amend, repeal, enlarge, or othe…

For the purposes of this article, the following words have the following meanings: (1) QUALIFIED RESCUE SQUAD MEMBER. An active member of an organized rescue squad of a city, town, county, or other subdivision of the state or a public corporation and a member of the Alabama Assoc…

(a) For tax years beginning on and after January 1, 2023, and ending December 31, 2027, unless extended by an act of the Legislature, a qualified volunteer firefighter who is a certified volunteer firefighter or a licensed EMT-Basic, or a qualified rescue squad member who is a li…

This article shall be known and cited as the Small Business Relief and Revitalization Act of 2022. (Act 2022-53, §1.)

For tax years ending after the enactment of the federal American Rescue Plan Act of 2021, any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1005 of the federal American Rescue Plan Act shall be all of the following: (1) Exempt from inc…

The Department of Revenue may adopt rules for the implementation and administration of this article. (Act 2022-53, §6.)

In addition to any other transfers that may be provided by law, the state Comptroller shall direct from the Education Trust Fund to the Refundable Tax Credit Fund the amount needed to make the payments of the one-time refundable tax credit provided for in Section 40-18-511, as we…

(a) As used in this section, the term “qualified taxpayer” means an individual taxpayer who filed an Alabama individual income tax return pursuant to the tax levied in Section 40-18-5, on or before October 17, 2022, for the taxable year that began on January 1, 2021, including an…

It is not the intent of this article to make appropriations, but the funding required to implement this article shall be made in a supplemental appropriations act. (Act 2023-377, §3; Act 2023-511, §3.)

This article shall be known and may be cited as the Preceptor Tax Incentive Program Act. (Act 2023-519, §1.)

For the purposes of this article, the following terms have the following meanings: (1) CLINICAL PRECEPTORSHIP. A clinical educational or training rotation for a student in any of the following programs that are physically located in this state and approved by and provided through…

(a)(1)The Alabama Statewide Area Health Education Centers Program Office shall administer the program and certify clinical preceptorships on behalf of all eligible qualified health professions training programs. (2) A clinical preceptorship may not be certified as eligible under …

(a)(1) Beginning with the 2024 tax year, a community-based faculty preceptor, if he or she conducts a clinical preceptorship, shall be allowed a credit against the tax imposed by Section 40-18-2, in the following amounts: a. A community-based physician, dentist, or optometrist pr…

The Alabama Statewide Area Health Education Centers Program Office shall do both of the following: (1) Issue to an eligible taxpayer a credit certificate to indicate the number of approved preceptor rotations and other information required by the Department of Revenue to certify …

(a) Annually, on or before the first day of December, the Alabama Statewide Area Health Education Centers Program Office shall report on the condition, performance, and accomplishments of the program to the Governor, Speaker of the House of Representatives, President Pro-Tempore …

The Department of Revenue may adopt rules for the implementation and administration of this article. (Act 2023-519, §7.)

This article shall be repealed on September 29, 2031, unless extended by act of the Legislature. (Act 2023-519, §8.)

This article shall be known and may be cited as the Alabama Workforce Housing Tax Credit Act. (Act 2024-302, §1.)

Regarding the adoption of qualified allocation plans as they relate to the workforce housing tax credit by the authority, the authority shall incentivize and prioritize four percent qualified projects, or in the case of awards under Section 40-18-533(f), qualified projects in are…

For the purposes of this article, the following terms have the following meanings: (1) ALABAMA TAX LIABILITY. The taxes otherwise due under Sections 27-3-29, 27-4A-3, 40-16-4, or 40-18-2. (2) AUTHORITY. The Alabama Housing Finance Authority or its successor authority or agency. (…

(a)(1) For applications for federal tax credits submitted to the authority on and after January 1, 2025, the authority, upon approving a federal low-income housing tax credit for a qualified project pursuant to the authority’s qualified allocation plan or multifamily housing reve…

The authority shall administer the workforce housing tax credit program and shall adopt the guidelines and qualified allocation plans necessary to implement and administer this article consistent with federal law provided in 26 U.S.C. § 42. The qualified allocation plan shall pro…

(a) The tax credit created pursuant to this article may only be claimed with respect to taxable years beginning on or after January 1, 2025. The tax credit provided in this article shall be subject to the reporting requirements of Section 40-1-50. (b) The department and the Alaba…

The Legislature hereby makes the following findings of fact and declares its intent to be as follows: Alabama is currently attracting and creating jobs and business investments at a record-setting pace. Despite historically low unemployment rates, Alabama’s workforce participatio…

For the purposes of this article, the following terms have the following meanings: (1) APPLICABLE TAXES. An employer’s, taxpayer’s, or child care provider’s, or in the case of a pass-through entity that is an employer, taxpayer, or child care provider, such employer’s, taxpayer’s…

(a) Effective for tax years beginning on or after January 1, 2025, and ending December 31, 2027, unless extended by an act of the Legislature, an employer may apply to the Department of Revenue for an employer tax credit to be applied against applicable taxes. The employer tax cr…

(a) Effective for tax years beginning on or after January 1, 2025, and ending December 31, 2027, unless extended by an act of the Legislature, a child care provider may apply to the Department of Revenue for a facility tax credit to be applied against applicable taxes, in an amou…

(a) The Department of Human Resources may make grants to nonprofit child care providers as provided in this section. (b) The Department of Human Resources may establish priorities, guidelines, standards, and processes by which grants may be awarded. (c) The Department of Human Re…

(a) The Department of Human Resources and the Department of Revenue shall adopt rules as necessary, on or before January 1, 2025, for the implementation and administration of this article. Such rules shall ensure that: (Act 2024-303, §6.)

(a) All filings and applications made with the Department of Revenue in relation to the employer tax credit or the facility tax credit shall be made using forms adopted by the Department of Revenue. Such applications and filings shall be treated as tax returns, subject to penalti…

This article, the purpose of which is to generate additional funds for eligible rural general acute care, critical access, and rural emergency hospitals to strengthen their financial viability, shall be known and may be cited as the “Rural Hospital Investment Act of 2025.” (Act 2…

For the purposes of this article, the following terms have the following meanings: (1) BOARD. The Rural Hospital Investment Program Board. (2) DEPARTMENT. The Alabama Department of Revenue. (3) ELIGIBLE RURAL HOSPITAL. A hospital that meets the requirements set out in Section 40-…

(a) The Rural Hospital Investment Program Board is established within the department to oversee the development and operation of the Rural Hospital Investment Program. The board shall consist of the following members: (1) The Governor, or his or her designee. (2) The State Treasu…

(a) In order to receive qualified donations as an eligible rural hospital under the program, a health care institution shall meet all of the following requirements: (1) Be a rural general acute care hospital, a rural emergency hospital, or a critical access hospital licensed by t…

The board shall do all of the following: (1) No later than November 1 of each year, create an operations manual for identifying rural hospitals and ranking the rural hospitals in order of financial need according to the criteria included in the hospital’s five-year plan. The manu…

(a) An eligible rural hospital shall only use qualified donations for the purpose of providing health care to the residents of the area that the rural hospital serves, which may include operational expenditures and expenditures for maintenance, capital upgrades, and improvements.…

Annually, the board and the department shall jointly prepare a report that, at a minimum, includes all qualified donations reported by eligible rural hospitals and all tax credits claimed and approved pursuant to this article for the preceding tax year. This report shall be provi…

(a) A taxpayer may claim a tax credit to offset eligible taxes for each qualified donation as provided in this section. (1) For a donor who is a single individual, a head of household, or married filing a separate return: an amount equal to 100 percent of the qualified donations …

(a) The statewide annual aggregate of the tax credit allowed for qualified donations shall not exceed the following amounts: (1) Twenty million dollars ($20,000,000) in the tax year ending December 31, 2026. (2) Twenty-five million dollars ($25,000,000) in the tax year ending Dec…

(a) The department shall adopt rules pursuant to the Alabama Administrative Procedure Act to administer and implement this article, inclusive of the responsibility of the board. The rules shall provide for all of the following: (1) That the tax credits will not reduce the distrib…

The tax credits created by this article may also qualify for federal income tax credits or deductions, but it is not intended for any qualified donation under this article to automatically qualify for any federal income tax credit or deduction. (Act 2025-404, §12.)

(a) The tax credits provided by this article may be claimed beginning January 1, 2026, for the 2026 tax year. (b) Except as provided in Section 40-18-557(b)(2), no tax credit may be claimed after tax year 2028. (Act 2025-404, §13.)