HB140 Summary

• Amends Section 40-18-194 of the Code of Alabama 1975 regarding income tax capital credits for qualifying projects of new businesses and business expansions.

• Allows capital credits to be carried forward from 1 to 4 years depending on capital costs: 4 years for projects with at least $400 million in costs, 3 years for $300-$400 million, 2 years for $200-$300 million, and 1 year for $100-$200 million.

• Requires qualifying projects to have capital costs of at least $100 million and provide not fewer than 100 new jobs for credit carryforward eligibility.

• Permits entities to delay initial credit utilization for up to 3 years after the project is placed in service, after which the 20-year credit period begins.

• Effective for all qualifying projects placed in service after December 31, 2011, and for projects with agreements entered into on or after that date.