HB58 - Alabama Jobs Act Summary

• Establishes the Alabama Jobs Act providing two tax incentives for approved companies with qualifying projects: a jobs credit equal to 3 percent of prior year wages for eligible employees over 10 years, and an investment credit equal to 1.5 percent of qualified capital investment annually over 10 years.

• Jobs credit applies against utility gross receipts and utility service use taxes and may be refundable or claimed as a carryforward credit; investment credit applies against income tax, financial institution excise tax, insurance premium tax, and utility taxes with similar carryforward provisions.

• Requires Secretary of Commerce and Governor to approve companies based on findings that projects qualify under designated activities, create significant new jobs (any number for certain high-tech industries, minimum 50 for others), will not decrease Alabama exports, and generate tax revenues exceeding the incentive costs.

• Creates permanent Joint Legislative Advisory Committee on Economic Incentives to monitor and evaluate the Department of Commerce's management of project agreements and recommend standards; provides aggregate cap of $850 million on outstanding incentives unless Legislature votes to increase.

• Incentives sunset after December 31, 2019 for new projects unless Legislature extends; repeals prior economic incentive articles but preserves them for projects showing intent within six months of enactment; establishes clawback provisions requiring companies to repay unearned credits if they fail to meet job, wage, or investment obligations.