Amendment vs bill Ways and Means Education Amendment UB85DX-1 vs Enrolled

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HB241 ENROLLED Z4OGWR-3 By Representatives Garrett, Ledbetter, Daniels, Reynolds RFD:
UB85DX-1 04/07/2023 KHF (F)KHF 2023-1420 SUB TO HB241 2 4 SYNOPSIS:
Ways and Means Education First Read:
Under existing law, the Alabama Jobs Act provides certain incentives to allow the state to foster economic development through the recruitment of quality projects and the expansion of existing businesses within Alabama.
04-Apr-23 Page 0 HB241 Enrolled Enrolled, An Act, Relating to the Alabama Jobs Act and the Growing Alabama Act and tourism;
Under existing law, the Growing Alabama Act provides a tax credit to eligible taxpayers who make contributions to economic development organizations for approved qualifying projects.
This bill would allow Alabama Jobs Act economic development programs to continue through July 31, 2028, ensuring economic growth, workforce development, and job creation.
This bill would increase the current annualized cap each year for five years allowing Alabama to be more competitive for larger economic development projects.
This bill would allow the investment tax credit transfer time to increase to five years allowing incentivized companies the ability to better realize credits for development projects.
This bill would allow Growing Alabama Act programs to continue through July 31, 2028, and increase the annual cap to allow greater expansion of economic development programs.
This bill would transfer certain programs under Growing Alabama Act to Innovate Page 1 Alabama for continued growth and support.
This bill would allow the Alabama Data Center Processing Economic Incentive Enhancement Act incentive to continue through July 31, 2028.
This bill would establish the Sweet Home Alabama Tourism Investment Act to authorize and provide for tax incentives for certified tourism destination projects.
A BILL TO BE ENTITLED AN ACT Relating to the Alabama Jobs Act and the Growing Alabama Act and tourism;
to extend the Growing Alabama Act sunset date to July 31, 2028, to increase the annual cap on funding approved pursuant to the Growing Alabama Act incrementally to thirty-five million dollars;
to extend the Growing Alabama Act sunset date to July 31, 2028, to increase the annual cap on funding approved pursuant to the Growing Page 2 Alabama Act to thirty-five million dollars;
to establish the Page 1 HB241 Enrolled process for renewing a tax rebate;
to establish the process for renewing a tax rebate;
(1) The economic well-being of the citizens of the state will be enhanced by the increased development and growth of employment within Alabama.
(1) The economic well-being of the citizens of the state will be enhanced by the increased development and growth Page 3 of employment within Alabama.
Page 2 HB241 Enrolled (5) The incentives provided in this article will increase revenues for the state without increasing taxes.
(5) The incentives provided in this article will increase revenues for the state without increasing taxes.
(10) Economic development through tax and financial incentives benefits the citizens of the state and is a public purpose of the state.
(10) Economic development through tax and financial Page 4 incentives benefits the citizens of the state and is a public purpose of the state.
All costs and expenses incurred by the incentivized company in connection with the acquisition, construction, installation, and equipping of a Page 3 HB241 Enrolled qualifying project, if such costs are required to be capitalized for purposes of the federal income tax, determined without regard to any rule that permits expenditures properly chargeable to a capital account to be treated as current expenditures.
All costs and expenses incurred by the incentivized company in connection with the acquisition, construction, installation, and equipping of a qualifying project, if such costs are required to be capitalized for purposes of the federal income tax, determined without regard to any rule that permits expenditures properly chargeable to a capital account to be treated as current expenditures.
Anyone or anything which has the powers to 95 own a project and have employees.
Anyone or anything which has the powers to own a project and have employees.
(5)(4)EMPLOYEES.
(5)(4) EMPLOYEES.
Some or all of those persons employed and residing in Alabama Persons employed in full time positions created by or through a qualifying project:
Some or all of those persons employed and residing in AlabamaPersons employed in full-time positions created by or through a qualifying project:
a.
Page 5 a.
Internal Revenue Service, the Department of Revenue, or the Department of Labor on returns or reports filed with the foregoing, including, but not limited to, IRS Form 941;
Internal Revenue Service,the Department of Revenue, or the Department of Labor on returns or reports filed with the foregoing, including, but not limited to, IRS Form 941;Form A-6, Form A-1, Form A-2, UC-CR-4, and UC-10-R.
Form A-6, Form A-1, Form A-2, UC-CR-4, and UC-10-R.
Who are assigned to a qualifying project for a Page 4 HB241 Enrolled period of at least one year.
Who are assigned to a qualifying project for a period of at least one year.
The period or periods of time during which an incentiivized company can receive one or more of the jobs act incentives.
The period or periods of time during which an incentivized company can receive one or more of the jobs act incentives.
Any sector, subsector, industry group, industry or national industry of the 2012 North American Industry Classification System, or any similar classification system developed in conjunction with the United States Department of Commerce or Office of Management and Budget.
Any sector, subsector, industry group, industry or national industry of the 2012 North Page 6 American Industry Classification System, or any similar classification system developed in conjunction with the United States Department of Commerce or Office of Management and Budget.
The agreement entered into between an approved company and the Governor establishing the Page 5 HB241 Enrolled terms and conditions for the provision of the jobs act incentives, as provided for in Section 40-18-374.
The agreement entered into between an approved company and the Governor establishing the terms and conditions for the provision of the jobs act incentives, as provided for in Section 40-18-374.
Any company that is under common ownership, management, or control with a company or an approved company, as the case may beAny entity that owns, owned, or is owned, directly or through one or more entities, a 50 percent or greater interest in the capital or profits of another.
Any company that is under common ownership, management, or control with a company or an approved company, as the case may beAny entity that owns, directly or through one or more entities, a 50 percent or greater interest in the capital or profits of another.
Total wages of an employee (including gross wages, salaries, overtime and bonuses), defined by reference to Section 25-4-16(b), without application of Sections 25-4-16(b)(1), 25-4-16(b)(2)a., 25-4-16(b)(3), and 25-4-16(b)(4).
Total wages of an employee (including gross wages, salaries, overtime and bonuses), defined by reference Page 7 to Section 25-4-16(b), without application of Sections 25-4-16(b)(1), 25-4-16(b)(2)a., 25-4-16(b)(3), and 25-4-16(b)(4).
Described by NAICS Code 1133, 115111, 2121, 22111, Page 6 HB241 Enrolled 221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862, 48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511, 5121 (other than 51213), 51221, 517, 518 (without regard to the premise that data processing and related services be performed in conjunction with a third party), 51913, 52232, 54133 (if predominantly in furtherance of another activity described in this article), 54134 (if predominantly in furtherance of another activity described in this article), 54138, 5415, 541614, 5417, 55 (if not for the production of electricity), 561422 (other than establishments that originate telephone calls), 562213, 56291, 56292, 611512, 927, or 92811.
Described by NAICS Code 1133, 115111, 2121, 22111, 221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862, 48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511, 5121 (other than 51213), 51221, 517, 518 (without regard to the premise that data processing and related services be performed in conjunction with a third party), 51913, 52232, 54133 (if predominantly in furtherance of another activity described in this article), 54134 (if predominantly in furtherance of another activity described in this article), 54138, 5415, 541614, 5417, 55 (if not for the production of electricity), 561422 (other than establishments that originate telephone calls), 562213, 56291, 56292, 611512, 927, or 92811.
For purposes of this subdivision, an "electric provider" shall also include an authority as defined in Section 11-50A-1(1).
For purposes of this subdivision, an "electric provider" shall also include an authority as defined in Page 8 Section 11-50A-1(1).
A "renewable energy generation facility" as used in this subdivision shall include any tangible property that is part of renewable energy generation, including any addition, modification, expansion, or upgrade to transmission or distribution systems that is required to accommodate the interconnection of renewable Page 7 HB241 Enrolled energy generation.
A "renewable energy generation facility" as used in this subdivision shall include any tangible property that is part of renewable energy generation, including any addition, modification, expansion, or upgrade to transmission or distribution systems that is required to accommodate the interconnection of renewable energy generation.
A commercial enterprise which is open to the public not less than 120 days during a calendar year and is designed to attract visitors from inside or outside of the State of Alabama, typically for its inherent cultural value, historical significance, natural or man-made beauty, or entertainment or amusement opportunities, including, but not limited to, a cultural or historical site, a botanical garden, a museum, a wildlife park or aquarium open to the public that cares for and displays a collection of animals or fish, an amusement park, a convention hotel and conference center, a water park, or a spectator venue or arena.
A commercial enterprise which is open to the public not less than 120 days during a calendar year and is designed to attract visitors from inside or outside of the State of Alabama, typically for its inherent cultural value, historical significance, natural or man-made beauty, or entertainment or amusement opportunities, including, but not limited to, a cultural or historical site, a botanical garden, a museum, a Page 9 wildlife park or aquarium open to the public that cares for and displays a collection of animals or fish, an amusement park, a convention hotel and conference center, a water park, or a spectator venue or arena.
Page 8 HB241 Enrolled g.
g.
This provision shall not be deemed to exclude customer service centers, call centers or headquarters otherwise allowed by this subdivision (1).
This provision shall not be deemed to exclude customer service centers, call centers or headquarters Page 10 otherwise allowed by this subdivision (1).
Any number of new employees, for a qualifying project in which the predominant activity involves chemical manufacturing, data centers, renewable energy generation, Page 9 HB241 Enrolled engineering, design, or research, metal/machining technology or toolmaking;
Any number of new employees, for a qualifying project in which the predominant activity involves chemical manufacturing, data centers, renewable energy generation, engineering, design, or research, metal/machining technology or toolmaking;
(5) The capital investment to be made at the qualifying project;
Page 11 (5) The capital investment to be made at the qualifying project;
(9) The dates or conditions that shall begin the Page 10 HB241 Enrolled running of the incentive periods for applicable jobs act incentives;
(9) The dates or conditions that shall begin the running of the incentive periods for applicable jobs act incentives;
and (15) Any other terms the parties deem necessary or desirable.
and (15) Any other terms the parties deem necessary or Page 12 desirable.
(c) The Governor may decrease the amounts and durations of the jobs act incentives to ensure that the anticipated revenues for the state will exceed the amount of tax incentives sought." "§40-18-375 (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 equalup to 3 percent of the wages paid to eligible Page 11 HB241 Enrolled Alabama resident employees during the prior year.
(c) The Governor may decrease the amounts and durations of the jobs act incentives to ensure that the anticipated revenues for the state will exceed the amount of tax incentives sought." "§40-18-375 (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 equalup to 3 percent of the wages paid to eligible Alabama resident employees during the prior year.
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As further provided in the project agreement, the The jobs credit may be paid to the incentivized company as a refund out of utility taxes during the incentive period, regardless of the amount of utility taxes actually paid by the incentivized company.
As further provided in the project agreement, the The jobs credit may be paid to the incentivized company as a Page 13 refund out of utility taxes during the incentive period, regardless of the amount of utility taxes actually paid by the incentivized company.
Thereafter, the Department of Revenue Page 12 HB241 Enrolled shall calculate the correct refund and issue it directly to the incentivized company.
Thereafter, the Department of Revenue shall calculate the correct refund and issue it directly to the incentivized company.
Prior to claiming the jobs credit as provided in this subdivision, the incentivized company shall submit to the Department of Commerce a certification as to the wages paid to eligible employees during the prior year.
Prior to claiming the jobs credit as provided in this subdivision, the incentivized company shall submit to the Page 14 Department of Commerce a certification as to the wages paid to eligible employees during the prior year.
Page 13 HB241 Enrolled (d) The Department of Finance shall adopt rules to ensure that the credit in no case would reduce the distribution for the Alabama Special Mental Health Trust Fund by using any unencumbered funds." "§40-18-376 (a) If provided for in the project agreement, the incentivized company is allowed an investment credit in an annual amount equalup to 1.5 percent of the capital investment incurred as of the beginning of the incentive period, to be used as follows:
(d) The Department of Finance shall adopt rules to ensure that the credit in no case would reduce the distribution for the Alabama Special Mental Health Trust Fund by using any unencumbered funds." "§40-18-376 (a) If provided for in the project agreement, the incentivized company is allowed an investment credit in an annual amount equalup to 1.5 percent of the capital investment incurred as of the beginning of the incentive period, to be used as follows:
(5) To offset state license taxes levied by Article 2 of Chapter 21;
Page 15 (5) To offset state license taxes levied by Article 2 of Chapter 21;
(b) A project agreement may specify any one or more of Page 14 HB241 Enrolled the following methods by which the investment credit shall be realized by the incentivized company, so long as a credit is not utilized more than once:
(b) A project agreement may specify any one or more of the following methods by which the investment credit shall be realized by the incentivized company, so long as a credit is not utilized more than once:
Following such examination as it deems necessary, the Department of Commerce may certify the information and deliver the same to the Department of Revenue.
Following such examination as it deems necessary, the Department of Commerce may certify the information and deliver Page 16 the same to the Department of Revenue.
This Page 15 HB241 Enrolled subdivision shall be liberally construed to apply to multiple levels of companies, to allow the investment credits to be used by those persons bearing the tax burdens of the qualifying project, and such companies shall include but shall in no way be limited to flow-through entities, employee stock ownership plans, mutual funds, real estate investment trusts, and it shall also apply to offset the income tax liability of employee/owners of a flow-through entity owned by an employee stock ownership plan trust.
This subdivision shall be liberally construed to apply to multiple levels of companies, to allow the investment credits to be used by those persons bearing the tax burdens of the qualifying project, and such companies shall include but shall in no way be limited to flow-through entities, employee stock ownership plans, mutual funds, real estate investment trusts, and it shall also apply to offset the income tax liability of employee/owners of a flow-through entity owned by an employee stock ownership plan trust.
In determining whether to approve any transfer, the Secretary shall make all of the following findings:
In determining whether Page 17 to approve any transfer, the Secretary shall make all of the following findings:
(ii) That the proposed transfer will enhance the Page 16 HB241 Enrolled economic benefits of the qualifying project;
(ii) That the proposed transfer will enhance the economic benefits of the qualifying project;
Prior to any transfer, the investment credit shall be certified by the Department of Commerce may certify the information and deliver the same to the Department of Revenuepursuant to paragraph (b)(1)b.
Prior to any Page 18 transfer, the investment credit shall be certified by the Department of Commerce may certify the information and deliver the same to the Department of Revenuepursuant to paragraph (b)(1)b.
Page 17 HB241 Enrolled d.
d.
Filing of the executed transfer agreement with the Department of Revenue shall perfect such transfer to the respect to such transferee and the Department of Revenue shall thereafter allow the appropriate amount of the investment credit to offset the tax liability of the transferee for any of the taxes listed in subsection (a) and, for any project agreements entered into after January 1, 2021 only, state license taxes levied by Article 2 of Chapter 21.
Filing of the executed transfer agreement with the Department of Revenue shall perfect such transfer to the respect to such Page 19 transferee and the Department of Revenue shall thereafter allow the appropriate amount of the investment credit to offset the tax liability of the transferee for any of the taxes listed in subsection (a) and, for any project agreements entered into after January 1, 2021 only, state license taxes levied by Article 2 of Chapter 21.
Page 18 HB241 Enrolled The Department of Revenue may adopt rules necessary to implement and administer the transfer provisions as provided in this act.
The Department of Revenue may adopt rules necessary to implement and administer the transfer provisions as provided in this act.
(d)(1) To the extent the investment credit is used to offset a financial institution excise tax liability, in making the report required by Section 40-16-6(d), the financial institution receiving the investment credit shall not take into account the qualifying project, and the Department of Finance shall adopt rules to ensure that the credit in no case would reduce the distribution for municipalities and counties.
(d)(1) To the extent the investment credit is used to Page 20 offset a financial institution excise tax liability, in making the report required by Section 40-16-6(d), the financial institution receiving the investment credit shall not take into account the qualifying project, and the Department of Finance shall adopt rules to ensure that the credit in no case would reduce the distribution for municipalities and counties.
(2) To the extent the investment credit is used to offset an insurance premium tax liability, the Department of Finance shall adopt rules to ensure that the credit would in no case reduce the distributions to the Alabama Special Mental Page 19 HB241 Enrolled Health Trust Fund by using any unencumbered funds.
(2) To the extent the investment credit is used to offset an insurance premium tax liability, the Department of Finance shall adopt rules to ensure that the credit would in no case reduce the distributions to the Alabama Special Mental Health Trust Fund by using any unencumbered funds.
(3) To the extent the investment credit is used to offset liability for the tax imposed by Section 40-21-82 or Article 2 of Chapter 21, the Department of Finance shall adopt rules to ensure that the credit in no case would reduce the distribution for the Alabama Special Mental Health Trust Fund by using any unencumbered funds." "§40-18-376.1 (a) As used in this section, the following terms shall have the following meanings:
(3) To the extent the investment credit is used to offset liability for the tax imposed by Section 40-21-82 or Article 2 of Chapter 21, the Department of Finance shall adopt rules to ensure that the credit in no case would reduce the distribution for the Alabama Special Mental Health Trust Fund by using any unencumbered funds." "§40-18-376.1 (a) As used in this section, the following terms shall have the following meaning:
That has experienced negative population growth over the last five years as determined by the Commissioner of Labor as of each January 1 using the most current data available from the United States Departments of Labor or Commerce, the United States Bureau of the Census, or any other federal or state agency or department.
That has experienced negative population growth over the last five years as determined by the Commissioner of Labor as of each January 1 using the most current data available from the United States Departments of Labor or Commerce, the United States Bureau of the Census, or any other federal or Page 21 state agency or department.
Any Alabama county that has a population of 50,00060,000 or less, as determined by the Commissioner of Labor as of each January 1 using the most current data available from the United States Departments of Labor or Commerce, the United States Bureau of the Census, or any other federal or state agency or department.
Any Alabama county that has a population of 50,000 or less, as determined by the Commissioner of Labor as of each January 1 using the most current data available from the United States Departments of Labor or Commerce, the United States Bureau of the Census, or any other federal or state agency or department.
(b) In making the findings required by Section Page 20 HB241 Enrolled 40-18-373(a), a company that proposes a qualifying project in a targeted or jumpstart county shall be an approved company for purposes of this section only if the Secretary of Commerce makes the additional finding that the qualifying project will increase the economic diversity of, or otherwise benefit, the targeted or jumpstart county.
(b) In making the findings required by Section 40-18-373(a), a company that proposes a qualifying project in a targeted or jumpstart county shall be an approved company for purposes of this section only if the Secretary of Commerce makes the additional finding that the qualifying project will increase the economic diversity of, or otherwise benefit, the targeted or jumpstart county.
(1) The jobs credit provided in Section 40-18-375(a) shall be up to 4.0 percent of the wages paid to eligibleAlabama resident employees during the prior year;
(1) The jobs credit provided in Section 40-18-375(a) Page 22 shall be up to 4.0 percent of the wages paid to eligibleAlabama resident employees during the prior year;
Such incentives shall be granted in project agreements executed by the Governor on the recommendation of the Secretary of Commerce." Page 21 HB241 Enrolled "§40-18-376.2 (a) The provisions in this section shall apply to the following:
Such incentives shall be granted in project agreements executed by the Governor on the recommendation of the Secretary of Commerce." "§40-18-376.2 (a) The provisions in this section shall apply to the following:
(2) Any incentivized company described by subdivision (2) of subsection (a) shall receive an additional 0.5 percent jobs credit provided in Section 40-18-375(a) on the wages paid during the prior year to its eligible Alabama resident employees.
Page 23 (2) Any incentivized company described by subdivision (2) of subsection (a) shall receive an additional 0.5 percent jobs credit provided in Section 40-18-375(a) on the wages paid during the prior year to its eligible Alabama resident employees.
(d) The Department of Labor shall periodically verify Page 22 HB241 Enrolled the actual number of veterans employed by the incentivized company described in subdivision (1) of subsection (a) and the wages of the veterans during the relevant year.
(d) The Department of Labor shall periodically verify the actual number of veterans employed by the incentivized company described in subdivision (1) of subsection (a) and the wages of the veterans during the relevant year.
(2) In making the findings required by Section 40-18-373(1), a technology company that proposes a qualifying project shall be an approved company for purposes of this section only if the Secretary of Commerce makes the additional finding that the qualifying project will increase the economic diversity of, or otherwise benefit, the state.
(2) In making the findings required by Section 40-18-373(1), a technology company that proposes a qualifying project shall be an approved company for purposes of this section only if the Secretary of Commerce makes the additional finding that the qualifying project will increase the economic Page 24 diversity of, or otherwise benefit, the state.
(1) A jobs credit against utility taxes, in an annual Page 23 HB241 Enrolled amount equal up to 4 percent of the wages paid to eligibleAlabama resident employees during the prior year.
(1) A jobs credit against utility taxes, in an annual amount equal up to 4 percent of the wages paid to eligibleAlabama resident employees during the prior year.
The use of technology to develop new coding or processes for the creation or delivery of goods or services in the following fields, or any additional activities determined by the Secretary of Commerce to be beneficial to the enhancement of businesses rooted in either of the following fields:
The use of technology to develop new coding or processes for the creation or delivery of goods or services in the following fields, or any additional activities determined Page 25 by the Secretary of Commerce to be beneficial to the enhancement of businesses rooted in either of the following fields:
(2) A company that, for a fixed term, educates and mentors early-stage technology companies recruited to a Page 24 HB241 Enrolled location in Alabama, with the goal of accelerating the companies' development and growth." "§40-18-376.4 (a) This section shall be applicable to an underrepresented company, as defined in this section.
(2) A company that, for a fixed term, educates and mentors early-stage technology companies recruited to a location in Alabama, with the goal of accelerating the companies' development and growth." "§40-18-376.4 (a) This section shall be applicable to an underrepresented company, as defined in this section.
(2) A jobs credit against utility taxes, in an annual amount equal up to 4 percent of the wages paid to eligibleAlabama resident employees during the prior year.
Page 26 (2) A jobs credit against utility taxes, in an annual amount equal up to 4 percent of the wages paid to eligibleAlabama resident employees during the prior year.
(1) The company is a for-profit business headquartered Page 25 HB241 Enrolled in a community eligible for investment through the federal New Markets Tax Credit program under 26 U.S.C.
(1) The company is a for-profit business headquartered in a community eligible for investment through the federal New Markets Tax Credit program under 26 U.S.C.
As used herein, an underrepresented person is a United States citizen who is a woman or is African American." "§40-18-377 (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.
As used herein, an underrepresented person is a United States citizen who is a woman or is African American." "§40-18-377 (a) After its execution, the Department of Commerce Page 27 shall forward to the Department of Revenue a copy of any project agreement that allows an incentivized company to claim a jobs act incentive.
(c) The acceptance of a tax credit under this article shall constitute approval and written consent by the taxpayer to disclose to the Secretary of Commerce the total tax liability, net operating loss, amount of credit claimed, recipient of the credit, and any transferor and transferee Page 26 HB241 Enrolled information.
(c) The acceptance of a tax credit under this article shall constitute approval and written consent by the taxpayer to disclose to the Secretary of Commerce the total tax liability, net operating loss, amount of credit claimed, recipient of the credit, and any transferor and transferee information.
The Department of Revenue may periodically audit any incentivized company to monitor compliance by the incentivized company with this article.
The Department of Revenue may periodically audit any incentivized company to monitor compliance by the incentivized company with this Page 28 article.
(c)(1) An incentivized company shall be liable for any Page 27 HB241 Enrolled unearned portion of the jobs credit or investment credit it claims or transfers pursuant to this article.
(c)(1) An incentivized company shall be liable for any unearned portion of the jobs credit or investment credit it claims or transfers pursuant to this article.
The report will be made by March 31 of the year following the calendar year in which the failure occurs and shall contain sufficient information for the Department of Revenue to calculate the unearned portion of the jobs credit or investment credit.
The report will be made by March 31 Page 29 of the year following the calendar year in which the failure occurs and shall contain sufficient information for the Department of Revenue to calculate the unearned portion of the jobs credit or investment credit.
(3) The Department of Revenue may assess an incentivized company for any unearned portion of the Page 28 HB241 Enrolled investment credit or jobs credit, with allowed interest and penalties, pursuant to the terms of Chapter 2A or 29.
(3) The Department of Revenue may assess an incentivized company for any unearned portion of the investment credit or jobs credit, with allowed interest and penalties, pursuant to the terms of Chapter 2A or 29.
No action or inaction on the part of the Legislature shall reduce or suspend any incentive awarded pursuant to this article in any past or future calendar year with respect to qualifying projects for which project agreements have been executed on or prior to July 31, 20232028, it being the sole intention of this section that failure of the Legislature to enact legislation continuing the incentives authorized by this article for periods after July 31, 20232028, shall affect only the availability of the incentives to qualifying projects for which project agreements have not been executed on or prior to July 31, 20232028, and shall not affect qualifying projects Page 29 HB241 Enrolled for which project agreements have been executed on or prior to July 31, 20232028." "§40-18-383 (a) At no time prior to the calendar year ending December 31, 2020, shall the annualized balance of outstanding jobs act incentives exceed $300 million, which amount would increase to three hundred twenty-five million dollars ($325,000,000) for the calendar year ending December 31, 2021 and, shall the annualized balance of the outstanding jobs act incentives exceed three hundred fifty million dollars ($350,000,000) for the calendar year ending December 31, 2022, which amount would increase to three hundred seventy-five million dollars ($375,000,000) for the calendar year ending December 31, 2023, four hundred million dollars ($400,000,000) for the calendar year ending December 31, 2024, four hundred twenty-five million dollars ($425,000,000) for the calendar year ending December 31, 2025, four hundred fifty million dollars ($450,000,000) for the calendar year ending December 31, 2026, and four hundred seventy-five million dollars ($475,000,000) for the calendar year ending December 31, 2027, unless the Legislature enacts legislation to allow additional jobs act incentives.
No action or inaction on the part of the Legislature shall reduce Page 30 or suspend any incentive awarded pursuant to this article in any past or future calendar year with respect to qualifying projects for which project agreements have been executed on or prior to July 31, 20232028, it being the sole intention of this section that failure of the Legislature to enact legislation continuing the incentives authorized by this article for periods after July 31, 20232028, shall affect only the availability of the incentives to qualifying projects for which project agreements have not been executed on or prior to July 31, 20232028, and shall not affect qualifying projects for which project agreements have been executed on or prior to July 31, 20232028." "§40-18-383 (a) At no time prior to the calendar year ending December 31, 2020, shall the annualized balance of outstanding jobs act incentives exceed $300 million, which amount would increase to three hundred twenty-five million dollars ($325,000,000) for the calendar year ending December 31, 2021 and, shall the annualized balance of the outstanding jobs act incentives exceed three hundred fifty million dollars ($350,000,000) for the calendar year ending December 31, 2022, which amount would increase to three hundred seventy-five million dollars ($375,000,000) for the calendar year ending December 31, 2023, four hundred million dollars ($400,000,000) for the calendar year ending December 31, 2024, four hundred twenty-five million dollars ($425,000,000) for the calendar year ending December 31, 2025, four hundred fifty million dollars ($450,000,000) for the calendar year ending December Page 31 31, 2026, and four hundred seventy-five million dollars ($475,000,000) for the calendar year ending December 31, 2027, unless the Legislature enacts legislation to allow additional jobs act incentives.
Page 30 HB241 Enrolled (c)(b) Jobs act incentives under this article shall not be available for any qualifying project unless at least 80 percent of the eligible employees created by the qualifying project are employed full time." "§40-18-417.1 For the purposes of the Growing Alabama Act pursuant to this article, the following words and phrases shall have the following meanings:
(c)(b) Jobs act incentives under this article shall not be available for any qualifying project unless at least 80 percent of the eligible employees created by the qualifying project are employed full time." "§40-18-417.1 For the purposes of this article, the following words and phrases shall have the following meanings:
Activities and initiatives that enhance the use of, and flow of goods through, an inland port or intermodal facility.
Activities and Page 32 initiatives that enhance the use of, and flow of goods through, an inland port or intermodal facility.
An entity that would conduct at a site an activity that is primarily described in Page 31 HB241 Enrolled Section 40-18-372(1).
An entity that would conduct at a site an activity that is primarily described in Section 40-18-372(1).
(10)(9) RENEWAL OF ALABAMA COMMISSION.
Page 33 (10)(9) RENEWAL OF ALABAMA COMMISSION.
An organization that is determined by the Department of Commerce to be an Alabama entity not operating for profit which is charged with improving the state or a region of the state and Page 32 HB241 Enrolled has a record of supporting or otherwise participating in economic development in the state." "§40-18-417.2 (a)(1) A local economic development organization which owns a site may apply to the Department of Commerce for funding to solve an inadequacy involving the site.
An organization that is determined by the Department of Commerce to be an Alabama entity not operating for profit which is charged with improving the state or a region of the state and has a record of supporting or otherwise participating in economic development in the state." "§40-18-417.2 (a)(1) A local economic development organization which owns a site may apply to the Department of Commerce for funding to solve an inadequacy involving the site.
If the site is an industrial or research park which needs connections to interstates, highways, roadways, rail systems, or sewer, fiber, electrical, gas, or water infrastructure, a list of the site preparation or public infrastructure work needed.
If the site is an industrial or research park which Page 34 needs connections to interstates, highways, roadways, rail systems, or sewer, fiber, electrical, gas, or water infrastructure, a list of the site preparation or public infrastructure work needed.
Page 33 HB241 Enrolled e.
e.
Thethe construction, maintenance, promotion, operation, management, leasing, and subleasing of an agricultural center which includes a multi-use facility and related commercial and noncommercial structures for livestock, equestrian, small animal shows and events, spectator events, trade shows, educational conferences, agricultural and agricultural related industries, educational, demonstrational or training purposes, educational and training conferences or events, recreational vehicle rallies, recreational vehicle multi-day parking, hosting of corporate and non-corporate organization meetings, use as fair grounds, operation of retail activities, and other events and facilities expected to draw participants and spectators from states located across the southeastern United States, with a projected total annual economic impact upon completion of all phases of the agricultural center of at least thirty-five million dollars Page 34 HB241 Enrolled ($35,000,000) and with the related and supporting infrastructure and facilities having a projected capital expenditure upon completion of all phases of the agricultural center of at least one hundred million dollars ($100,000,000);
Thethe construction, maintenance, promotion, operation, management, leasing, and subleasing of an agricultural center which includes a multi-use facility and related commercial and noncommercial structures for livestock, equestrian, small animal shows and events, spectator events, trade shows, educational conferences, agricultural and agricultural related industries, educational, demonstrational Page 35 or training purposes, educational and training conferences or events, recreational vehicle rallies, recreational vehicle multi-day parking, hosting of corporate and non-corporate organization meetings, use as fair grounds, operation of retail activities, and other events and facilities expected to draw participants and spectators from states located across the southeastern United States, with a projected total annual economic impact upon completion of all phases of the agricultural center of at least thirty-five million dollars ($35,000,000) and with the related and supporting infrastructure and facilities having a projected capital expenditure upon completion of all phases of the agricultural center of at least one hundred million dollars ($100,000,000);
or b.
or Page 36 b.
(e) The application provided in subsection (a) shall include a notarized affirmation by an officer of the economic development organization that the submission of the Page 35 HB241 Enrolled application did not violate the conflict of interest policy referred to in subsection (d)." "§40-18-417.3 (a) Following a review, if the Department of Commerce should approve the application provided in subsection (a) of Section 40-18-417.2, it shall forward the application to the Renewal of Alabama Commission.
(e) The application provided in subsection (a) shall include a notarized affirmation by an officer of the economic development organization that the submission of the application did not violate the conflict of interest policy referred to in subsection (d)." "§40-18-417.3 (a) Following a review, if the Department of Commerce should approve the application provided in subsection (a) of Section 40-18-417.2, it shall forward the application to the Renewal of Alabama Commission.
As to improvements at industrial sites, 991 the commission shall give preference to sites with at least 1,000 acres of available space.
As to improvements at industrial sites, the commission shall give preference to sites with at least 1,000 acres of available space.
Notwithstanding the foregoing, the commission may meet by telephone or some other telecommunications device so long as members of the public are allowed the opportunity to listen to or otherwise observe the commission’s deliberations.
Notwithstanding the foregoing, the commission may meet by telephone or some other Page 37 telecommunications device so long as members of the public are allowed the opportunity to listen to or otherwise observe the commission’s deliberations.
(d) Following approval by the commission, the Department of Commerce shall enter into an agreement with the Page 36 HB241 Enrolled economic development organization which shall do all of the following:
(d) Following approval by the commission, the Department of Commerce shall enter into an agreement with the economic development organization which shall do all of the following:
(3) Require the economic development organization to provide a review of its financial accounts as directed by the Renewal of Alabama Commission.
Page 38 (3) Require the economic development organization to provide a review of its financial accounts as directed by the Renewal of Alabama Commission.
(f) The Department of Commerce shall publish on its website a list of all approved applications and a list of the economic development organizations that made the approved Page 37 HB241 Enrolled applications." "§40-18-417.4 (a) A taxpayer is allowed a Growing Alabama Credit to be applied against all of the following:
(f) The Department of Commerce shall publish on its website a list of all approved applications and a list of the economic development organizations that made the approved applications." "§40-18-417.4 (a) A taxpayer is allowed a Growing Alabama Credit to be applied against all of the following:
The online system shall allow taxpayers to agree to make a cash contribution to an economic development organization which was approved by the Renewal of Alabama Commission, as provided in Section 40-18-417.3.
The online system shall allow taxpayers Page 39 to agree to make a cash contribution to an economic development organization which was approved by the Renewal of Alabama Commission, as provided in Section 40-18-417.3.
(d) The cumulative amount of funding approved pursuant to this section shall not exceed twenty million dollars ($20,000,000) Page 38 HB241 Enrolled in a calendar year for calendar years ending prior to January 1, 2023, and thirty-five million dollars ($35,000,000) in a calendar year for calendar years beginning January 1, 2023.
(d) The cumulative amount of funding approved pursuant to this section shall not exceed twenty million dollars ($20,000,000) in a calendar year for calendar years ending prior to January 1, 2023, and thirty-five million dollars ($35,000,000) in a calendar year for calendar years beginning January 1, 2023.
Of that amount, no more than four million dollars ($4,000,000) of funding in the aggregate may be approved for accelerator programs as described in Section 40-18-376.3 (c) (2).
Of that amount, no more than four million dollars ($4,000,000) of funding in the aggregate may be approved for accelerator programs as described in Section 40-18-376.3(c)(2).
prior to January 1, 2024, which amount would increase to twenty-three million dollars ($23,000,000)for the calendar year ending December 31, 2024, twenty-six million dollars ($26,000,000) for the calendar year ending December 31, 2025, twenty-nine million dollars($29,000,000) for the calendar year ending December 31, 2026, thirty-two million dollars ($32,000,000) for the calendar year ending December 31, 2027, and thirty-five million dollars ($35,000,000) for calendar year ending January 1, 2028.
Credits may only be claimed by the donating taxpayer and may not be assigned or transferred to any other Page 39 HB241 Enrolled taxpayer.
Credits may only be claimed by the donating Page 40 taxpayer and may not be assigned or transferred to any other taxpayer.
Any project granted an incentive prior to July 31, 2028December 31, 2023, shall be entitled to those incentivesthe incentive Page 40 HB241 Enrolled pursuant to the project agreement regardless of whether Act 2012-210 is reauthorized." Section 3.
Any project granted an incentive prior to July 31, 2028December Page 41 31, 2023, shall be entitled to those incentivesthe incentive pursuant to the project agreement regardless of whether Act 2012-210 is reauthorized." Section 3.
e.
Page 42 e.
Page 41 HB241 Enrolled f.
f.
The attraction must be open to the public at least five days per week, serve food and beverages, and provide live Page 42 HB241 Enrolled entertainment at least three nights per week.
The attraction must be open to the public at least Page 43 five days per week, serve food and beverages, and provide live entertainment at least three nights per week.
A qualifying project may be any combination of qualifying tourist attractions, hotels, marinas, and resorts with a minimum private investment of thirty-five million Page 43 HB241 Enrolled dollars ($35,000,000) in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities, and other related approved soft costs.
A qualifying project may be any combination of qualifying tourist attractions, hotels, marinas, and resorts Page 44 with a minimum private investment of thirty-five million dollars ($35,000,000) in land, buildings, architecture, engineering, fixtures, equipment, furnishings, amenities, and other related approved soft costs.
c.
Page 45 c.
Page 44 HB241 Enrolled d.
d.
k.
Aquariums.
§40-18-472 (a) In order for an applicant to be an approved Page 45 HB241 Enrolled company, all of the following shall occur:
§40-18-472 (a) In order for an applicant to be an approved Page 46 company, all of the following shall occur:
Each certificate shall include the amount of the approved project costs, the maximum rebate available, and the rebate term of 10 years with a five-year carry forward from the completion date or the date on or which five million dollars ($5,000,000) of the approved project costs has been rebated to the applicant, whichever threshold is met first.
Each certificate shall include the amount of the approved project costs, the maximum rebate available, and the rebate term of 10 years with a five-year carryforward from the completion date or the date on or which five million dollars ($5,000,000) of the approved project costs has been rebated to the applicant, whichever threshold is met first.
§40-18-473 (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 in the amount of up to five million Page 46 HB241 Enrolled dollars ($5,000,000) may be claimed.
§40-18-473 (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 in the amount of up to five million Page 47 dollars ($5,000,000) may be claimed.
(b) Tax rebates may carry forward for five years.
(b) Tax rebates may carryforward for five years.
(c)(1) The tax rebates authorized by this act are limited to an aggregate amount for all certified tourism destination projects of ten million dollars ($10,000,000) annually with 10 percent set aside annually for certified tourism destination projects located in targeted or Alabama counties.
(c)(1) The tax rebates authorized by this act are limited to an aggregate amount for all certified tourism destination projects of twenty million dollars ($20,000,000) annually with 10 percent set aside annually for certified tourism destination projects located in rural or distressed Alabama counties.
(4) Rebates authorized under this article shall be for up to 10 years, commencing on the date the tourism attraction opens for business and begins to collect taxes generated by, or arising within, the tourism destination project.
(4) Rebates authorized under this article shall be for 10 years, commencing on the date the tourism attraction opens for business and begins to collect taxes generated by, or arising within, the tourism destination project.
The approval must be in the form of a Page 47 HB241 Enrolled resolution of the governing authority acknowledging support of the project and acknowledging that a portion no less than 20 percent of the tax rebates will be comprised of municipal taxes.
The approval must be in the form of a Page 48 resolution of the governing authority acknowledging support of the project and acknowledging that a portion no less than 20 percent of the tax rebates will be comprised of municipal taxes.
Page 48 HB241 Enrolled (11) The tax rebate allowed under this article shall be effective beginning August 1, 2023, and shall continue through July 31, 2028, unless continued by an act of the Legislature.
Page 49 (11) The tax rebate allowed under this article shall be effective beginning October 1, 2023, and shall continue through September 30, 2034, unless continued by an act of the Legislature.
(d) Notwithstanding the ten million dollar ($10,000,000) annual cap on tax rebates allowed, the board may approve an annual onetime designation of an additional two million five hundred thousand dollars ($2,500,000) in tax rebates for one project per calendar year with a minimum capital investment amount of seventy-five million dollars ($75,000,000).
(d) Notwithstanding the twenty million dollar ($20,000,000) annual cap on tax rebates allowed, the board may approve an annual onetime designation of an additional two million five hundred thousand dollars ($2,500,000) in tax rebates for one project per calendar year with a minimum capital investment amount of seventy-five million dollars ($75,000,000).
§40-18-475 The department shall report to the Legislature by the second legislative day of the regular session of the third year following passage of this act, and annually thereafter, on the overall economic activity, usage, and impact to the Page 49 HB241 Enrolled state of the tax rebates allowed for tourism destination projects.
§40-18-475 The department shall report to the Legislature by the second legislative day of the regular session of the third year following passage of this act, and annually thereafter, Page 50 on the overall economic activity, usage, and impact to the state of the tax rebates allowed for tourism destination projects.
Page 50 HB241 Enrolled ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 13-Apr-23, as amended.
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John Treadwell Clerk Senate 20-Apr-23 __ Passed Page 51