SB593 Summary

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

• Creates tax credits ranging from 5-8% of the investment purchase price, claimed over seven annual credit allowance dates (8% for first four years, 7% for fifth year, 6% for sixth year, 5% for seventh year).

• Limits annual tax credit utilization to $12,000,000 per fiscal year and caps qualified low-income community investments at $10,000,000 per business across all entities.

• Requires Alabama Development Office to certify qualified equity investments and establish job and payroll creation standards; imposes $5,000 nonrefundable application fee per application.

• Includes recapture and forfeiture provisions: credits are recaptured if federal credits are recaptured, if redemptions occur before seven-year holding period, if 85% investment threshold is not met in Alabama, or if job creation standards are not satisfied by fifth anniversary.