HB244 Alabama 2021 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, 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, 2022; 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.