HB34 - Alabama Renewal Act Summary

• Establishes the Renewal of Alabama Commission to oversee two new economic development tax credit programs designed to promote business growth and port facility usage in Alabama.

• Creates a Port Credit allowing companies in manufacturing, warehousing, or distribution to claim credits of $50 per TEU, $3 per net ton, or $0.04 per kilogram for air freight based on increased cargo volume beyond baseline levels, capped at $12 million lifetime and $5 million annually.

• Establishes the Growing Alabama Credit allowing taxpayers to claim up to 50% of income tax liability for cash contributions to approved local economic development organizations, capped at $5 million for fiscal 2016 and $10 million annually for fiscal years 2017-2020, with at least 25% reserved for targeted counties.

• Requires port credit applicants and local economic development organizations to submit applications demonstrating job creation, capital investment, and economic development benefits; port credits may be carried forward up to 5 years if unused.

• Sunsets the Growing Alabama Credit provision following fiscal year 2020, though previously awarded credits remain valid; Act becomes effective 90 days after passage.