HB804 Summary

• Establishes the Alabama New Markets Development Program to provide income tax credits for investments in qualified low-income community businesses in Alabama.

• Allows taxpayers to claim tax credits equal to 8% (first four years), 7% (fifth year), 6% (sixth year), and 5% (seventh year) of the purchase price of qualified equity investments.

• Requires qualified community development entities to invest at least 85% of investment proceeds in qualified low-income community businesses within Alabama by the first anniversary and maintain that level through the seventh year.

• Caps annual tax credit utilization at $12,000,000 per fiscal year and requires a $5,000 application fee for certification of each qualified equity investment.

• Imposes recapture and forfeiture provisions if investments fail to meet requirements, including federal recapture triggers, early redemptions, or failure to meet job creation and payroll standards set by the Alabama Development Office.