HB416 Summary

• Enacts the "Alabama Renewal Act" creating two new tax credit programs: a port credit for increased cargo usage at state port facilities and a "Growing Alabama Credit" for economic development contributions.

• Port credit allows $50 per TEU (twenty-foot equivalent unit) or $3.00 per net ton for cargo volume increases above baseline, capped at $8 million total, with unused credits carrying forward up to 5 years.

• Growing Alabama Credit allows tax credits for cash and property donations to qualifying economic development organizations, with annual caps of $5 million (2016), $10 million (2017), and $15 million (2018 and thereafter).

• Creates the Renewal of Alabama Commission composed of the Finance Director, Secretary of Commerce, and three gubernatorial appointees to approve port credits and oversee the programs.

• Requires Department of Commerce designation of eligible economic development organizations and mandates annual reporting on credit usage to the legislature; effective January 1, 2016.