HB109 Alabama 2020 Session

This bill would establish the Alabama Research and Development Act that would provide for a research and development tax credit to certain Alabama companies. The credit would be based on in-house research, contracted research expenses conducted in Alabama, and consortium research expenses for qualified research conducted in Alabama

This bill would limit the Alabama Research and Development tax credits to no more than $25 million of credits for research and development expenses in any calendar year; and no eligible company or business could claim more than 20 percent in a single tax year

To enact the Alabama Research and Development Act; to allow a research and development tax credit for qualified research expenses in Alabama; to provide that no more than $20 million of tax credits for major research and development expenses and $5 million of tax credits for minor research and development in any calendar year; and no one taxpayer would be allowed more than 20 percent in a single tax year; to allow the credits to offset the taxes in Chapters 16 and 18 of Title 40, Code of Alabama 1975, and estimated payments thereof; to provide that the income tax credits shall not affect estimated income tax payments before January 1, 2021; to provide for the promulgation of rules; to provide for the coordination between the availability of the federal research credit and the credit herein; and to provide for an effective date.