HB59 Alabama 2015 Session

The Alabama Reinvestment and Abatements Act would create incentives to encourage capital reinvestment by businesses in Alabama into their current operations, and would grant additional authority to abate noneducational ad valorem taxes

The bill would create reinvestment incentives to help ensure that companies currently operating in Alabama would not close or move. For certain properties that are refurbished, upgraded, or placed back in service, abatements of certain construction related transaction taxes and certain noneducational ad valorem taxes would be available, companies could receive a rebate of incremental increases in utility taxes, and AIDT worker training would be available

The bill would also allow for abatements of state ad valorem taxes and local noneducational property taxes to be granted for up to 20 years, an additional 10 years over current state law

Businesses or business activities eligible to receive abatements would also be amended to reflect consistency with other incentive programs authorized by state law

To enact the Alabama Reinvestment and Abatements Act; to provide certain incentives to promote capital reinvestment by existing industry in Alabama; to authorize abatements of construction related transaction taxes, state ad valorem taxes, and municipal and county noneducational ad valorem taxes in certain instances; to provide that municipal taxes could be abated only by the municipality, county taxes only by the county, and state taxes only by the Governor; to authorize a refund of new, incremental taxes levied by Sections 40-21-82(a) and 40-21-102(a), Code of Alabama 1975, for a qualifying project; to provide for proof that such incentive is due to be granted; to provide for the distribution of utility taxes when a company claims such incentive; to authorize AIDT to perform employee training for the operation of any equipment for qualifying projects; to provide procedures for the granting of abatements; to provide for the promulgation of forms for information to be submitted to a department of state government, and that such submissions shall be treated as tax returns; to provide for audits of companies claiming the incentives; to provide for the continued applicability of Chapter 9B of Title 40, Code of Alabama 1975, to private users; to provide that no company shall have any right to incentives that are granted absent strict compliance with this act; to provide that no cause of action shall exist for the denial of any benefit under this act; to authorize abatements of state ad valorem taxes and local noneducational ad valorem taxes for a period of up to 20 years; to provide that neither an inducement nor a request for inducement is required to apply for, grant, or receive any abatement of taxes allowed to be abated; to update the NAICS codes and include other activities; to provide that abatements would end if the property has ceased to be used for its intended purpose for at least 6 months; for ad valorem tax abatements longer than 10 years, to provide that municipal taxes could be abated only by the municipality, county taxes only by the county, and state taxes only by the Governor; to provide for the disposition of financial remuneration paid by private users after an abatement, based on the tax proceeds which would have been paid; to create a new Chapter 9G of Title 40, Code of Alabama 1975; to amend Sections 40-9B-3 and 40-9B-5, Code of Alabama 1975; to provide for the promulgation of regulations; to provide for the severability of invalid provisions; to provide for the repeal of conflicting laws; to provide for an effective date.