Title 40

Notwithstanding any other provision of law to the contrary, for all tax years beginning after December 31, 2011, any agricultural trade or business may elect to expense qualified irrigation equipment under the provisions of 26 U.S.C. §179, as such section existed on January 1, 20…

(a)(1) Subject to subdivision (2), for all tax years beginning after December 31, 2011, until tax year ending December 31, 2017, there shall be allowed to any agricultural trade or business an income tax credit equal to 20 percent of the cost of the purchase and installation of a…

Nothing in this article changes the applicability of existing environmental and water laws and regulations in the State of Alabama including the Alabama Water Use Reporting Program administered by the Alabama Office of Water Resources. (Act 2012-391, p. 1049, §4.)

The Department of Revenue shall promulgate rules and regulations for the implementation of the credit authorized in this article and shall coordinate with the Alabama State Soil and Water Conservation Committee (ASWC) for technical service for the eligible applicants. (Act 2012-3…

(a) The Irrigation Equipment Tax Credit, Article 14, commencing with Section 40-18-340, Chapter 18, of Title 40, is repealed effective December 31, 2028, unless extended by an act of the Legislature prior to that date for no more than five additional years.(b) The repealing of th…

As used in this article, the following terms shall have the following meanings: (1) COMMISSIONER. The Commissioner of Revenue of the State of Alabama. (2) OUT-OF-STATE ADOPTION. An adoption through an out-of-state or foreign agency or government, through private individuals who a…

(a) A taxpayer shall be allowed a one time, refundable credit against the tax imposed by Section 40-18-2, for a private adoption or the adoption of a qualified foster child until December 31, 2022. The amount of such credit shall be one thousand dollars ($1,000) per child adopted…

The commissioner shall be authorized to promulgate any rules necessary to implement and administer this article. (Act 2014-413, p. 1517, §4.)

(a) This article shall be known and may be cited as the Alabama Jobs Act. (b) The Legislature makes the following findings: (1) The economic well-being of the citizens of the state will be enhanced by the increased development and growth of employment within Alabama. (2) It is in…

The Legislature finds as follows: (a) While Alabama’s incentive programs have succeeded in growing industry in the more populated parts of the state, Alabama’s rural and low growth communities have not enjoyed the same rates of success. (b) Alabama’s incentives grew out of a need…

For a company to receive one or both of the jobs act incentives provided in this article, all of the following shall occur: (1) There must be a qualifying project predominantly conducting an activity specified in Section 40-18-372(1); (2) The qualifying project shall create at le…

A qualifying project must be found by the Secretary of Commerce to conduct an activity specified in subdivision (1) and to meet the minimum standard set forth in subdivision (2). (1) A qualifying project must predominantly conduct an activity that is any one or more of the follow…

In order for a company to be an approved company, all of the following shall occur: (1) For any company that proposes a qualifying project, the Secretary of Commerce shall make all of the following findings: a. That the project is in fact a qualifying project; b. That the qualify…

(a) An incentivized company may claim either or both of the jobs act incentives, to the extent provided in the project agreement. (b) In order for an incentivized company to claim the jobs act incentives, the Governor and the incentivized company shall execute a project agreement…

(a)(1) If provided for in the project agreement and in accordance with the terms therein, the incentivized company is allowed a jobs credit against utility taxes, in an annual amount up to 3 percent of the wages paid to eligible Alabama resident employees during the prior year. T…

(a) If provided for in the project agreement, the incentivized company is allowed an investment credit in an annual amount up to 1.5 percent of the capital investment incurred as of the beginning of the incentive period, to be used as follows: (1) To offset the income taxes found…

(a) As used in this section, the following terms have the following meanings: (1) JUMP START COUNTY. Any Alabama county that meets all the following: a. Does not qualify as a targeted county. b. Has experienced negative population growth over the last five years as determined by …

(a) The provisions in this section shall apply to the following: (1) Any incentivized company that employed, in the prior year, at least 12 percent of its employees as veterans who received an honorable or general discharge. (2) Any incentivized company with a qualifying project …

(a)(1) This section shall be applicable to a technology company so long as there is a project agreement which provides that Alabama is or will become the company’s headquarters, the place of residence of its top three executives, and the place of residence of at least 75 percent …

(a) This section shall be applicable to an underrepresented company, as defined in this section. In making the findings required by Section 40-18-373(1), an underrepresented company that proposes a qualifying project shall be an approved company for purposes of this section only …

(a) After its execution, the Department of Commerce shall forward to the Department of Revenue a copy of any project agreement that allows an incentivized company to claim a jobs act incentive. (b) Jobs act incentives shall not be considered securities under Section 8-6-2(10). (c…

(a) The Department of Labor shall periodically verify the actual number of employees employed at the qualifying project and the wages of the employees during the relevant year. If the Department of Labor is not able to provide the verification utilizing all available resources, i…

(a) There is hereby created a permanent Joint Legislative Advisory Committee on Economic Incentives, hereinafter referred to as the committee. (b) The committee shall be comprised of all of the following persons: (1) The chairs of the House Ways and Means General Fund and Educati…

The Department of Commerce shall publish all of the following information on its website: (1) For each project incentivized under this article: a. The name of the incentivized company. b. The county of the qualifying project. c. The estimated capital investment. d. The estimated …

(a) The Departments of Commerce, Labor, Insurance, Revenue, and Finance shall implement this article, exercise all powers as authorized in this article, and promulgate regulations to implement and administer the provisions of this article. b) All filings made by a private party w…

(a) Nothing in this article shall be construed to constitute a guarantee or assumption by the state of any debt of any company nor to authorize the credit of the state to be given, pledged, or loaned to any company. (b) The provisions of this article shall not be construed in a m…

The incentives authorized by this article shall not be available for qualifying projects for which project agreements have not been executed on or prior to July 31, 2028, unless the Legislature enacts legislation to continue or reinstate the incentives for new projects after that…

(a) At no time prior to the calendar year ending December 31, 2021, shall the annualized balance of the outstanding jobs act incentives exceed three hundred fifty million dollars ($350,000,000), which amount shall increase to three hundred seventy-five million dollars ($375,000,0…

(a) Both of the following shall be considered industrial or research enterprises for purposes of Chapter 9B of this Title 40, approved activities for purposes of Chapter 9G of this Title 40, and qualifying projects for purposes of Article 16 of Chapter 18 of this Title 40: (1) An…

The departments of Economic and Community Affairs, Revenue, Commerce, and Finance shall implement Act 2019-392, exercise all powers as authorized in Act 2019-392, and adopt rules to implement and administer Act 2019-392. (Act 2019-392, §8.)

Notwithstanding the provisions of Section 40-18-376(d)(2), to the extent the investment credit is used to offset an insurance premium tax liability and a portion of the insurance premium taxes are deposited into the Education Trust Fund, the Department of Finance shall adopt rule…

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…

This article shall be known and may be cited as the Alabama Small Business and Agribusiness Jobs Act. (Act 2016-188, §1.)

For the purpose of this article, the following words and phrases shall have the following meanings: (1) ALABAMA SMALL BUSINESS EMPLOYER. A business organization duly formed, organized, or qualified to do business in the state, with its headquarters or principal place of business …

(a) An Alabama small business tax credit is hereby allowed for any Alabama small business employer that creates a new job and hires a new full-time employee to fill that job. The credit shall be a one-time credit equal to one thousand five hundred dollars ($1,500) for each qualif…

The department may adopt rules consistent with this article as necessary to implement and administer this article. Rules may be adopted to include, but not limited to, a requirement that, upon request, taxpayers shall receive credits for up to, but no more than, the number of qua…

By December 31, 2016, the Department of Revenue shall create and implement a program to actively promote to small business owners, tax professionals, and other appropriate parties the tax credits allowed under the Alabama Small Business Jobs Act created by this article, the Full …

For the purposes of this article, the following words and phrases shall have the following meanings: (1) BASE CARGO VOLUME. The greater of the following: a. One hundred five percent of the cargo volume of a port facility user in the 12-month period immediately preceding the appli…

(a) The port credit provided for in Section 40-18-403 is created by this article and is allowed upon strict compliance with the provisions herein. (b) Prior to the allowance of the port credit, an application shall be filed with the commission, on a form promulgated by the commis…

(a) There is hereby created the Renewal of Alabama Commission. (b) The commission shall be comprised of all of the following persons: (1) The Director of Finance, or his or her designee. (2) The Secretary of Commerce, or his or her designee. (3) The Chair of the House Ways and Me…

(a) If approved by the commission, a port credit is allowed, in an amount equal to the cargo volume calculated from subdivisions (1) and (2) as follows multiplied by the appropriate amount shown in the table in subsection (b): (1) The port user’s cargo volume in the 12-month peri…

This article shall be known and may be cited as the Growing Alabama Act. (Act 2021-2, §2.)

For the purposes of the Growing Alabama Act pursuant to this article, the following words and phrases have the following meanings: (1) CAPITAL IMPROVEMENTS. Construction and rehabilitation expenses of a capital nature at an inland port or intermodal facility, the dredging of wate…

(a)(1) A local economic development organization that owns a site, either solely or jointly with other local economic development organizations, may apply to the Department of Commerce for funding to solve an inadequacy involving the site. For sites with multiple owners, all owne…

(a) Following a review, if the Department of Commerce approves the application provided in Section 40-18-417.2(a), it shall forward the application to the Renewal of Alabama Commission. (b) The Renewal of Alabama Commission shall consider the application and shall approve it if t…

(a) A taxpayer is allowed a Growing Alabama Credit to be applied against all of the following: (1) To offset the income taxes levied in this chapter, or as an estimated tax payment of income taxes. (2) To offset the state portion of the financial institution excise tax levied in …