HB599 Summary

• Amends Section 40-18-194 of the Code of Alabama 1975 to extend the income tax capital credit carry-forward period from four years to five years for qualifying business projects with at least $50 million in capital costs and 50 new jobs.

• Reduces the capital cost threshold from $100 million to $50 million for projects to qualify for the extended five-year carry-forward period for unused tax credits.

• Maintains existing four-year carry-forward limits for projects with capital costs of $100 million or more, with specific limitations based on total capital investment levels ($400 million, $300 million, $200 million, and $100 million thresholds).

• Allows entities to delay the initial use of the capital credit for up to three years after the qualifying project is placed in service, after which the 20-year credit period begins.

• Becomes effective on the first day of the third month following passage and approval by the Governor.