HB144 Summary

• Amends Sections 40-9B-3 and 40-18-190 of the Code of Alabama 1975 to expand existing tax incentives to investments by companies primarily engaged in the coal mining industry (Industry Group 2121).

• Modifies capital cost calculations for coal mining companies by excluding land acquisition costs and architectural/engineering service costs, allowing the capital credit to be calculated on 100% of the modified capital costs.

• Limits capital credits for coal mining companies to a maximum of 50% of modified capital costs, with annual credits of up to 5% over 20 years.

• Restricts abatements of state taxes for coal mining companies to 50% of state-levied non-educational ad valorem taxes, construction-related transaction taxes, and mortgage and recording taxes on private use industrial property.

• Requires the Department of Revenue to submit annual reports to the Legislature detailing the number of qualifying projects, capital costs, total capital credits claimed, and total taxes abated, with a two-year sunset provision requiring legislative renewal by joint resolution.