SB78 Alabama 2019 Session

Under existing law, there are no economic incentives extended to Alabama businesses for qualified research expenses incurred by Alabama companies that spend funds and resources in-house, or pay Alabama research companies to conduct qualified research for new or improved products or services

This bill would establish the Alabama Innovation Act that would provide for research and development enhancement grants to certain Alabama companies. The grant would be based on in-house research and contract research expenses conducted in Alabama and consortium research expenses for qualified research conducted in Alabama

This bill would limit the research and development enhancement grants to no more than $8 million of grants in the 2020 fiscal year, and $5 million each fiscal year thereafter through the 2024 fiscal year; and no eligible company or business can be awarded more than 20% of the maximum amount awarded in a single fiscal year. The grants would be claimed on a first-come, first-served basis

To enact the Alabama Innovation Act; to allow a research and development enhancement grant for qualified research expenses in Alabama; to provide that no more than $8 million of grants could be awarded for the 2020 fiscal year, and $5 million each fiscal year thereafter through the 2024 fiscal year, and no eligible company or business can be awarded more than 20% of the maximum amount awarded in a single fiscal year; to require that the grant only apply to research falling within certain industries; to direct the Alabama Department of Economic and Community Affairs to develop rules to administer the program; to establish the Alabama Research and Development Enhancement Fund; to provide the fund to receive appropriations from the legislature, or from the receipt of gifts, grants, or federal funds to be expended for the purpose of the program; to provide for the criteria under which grants are to be given; and to require an annual report on the progress of the program.