HB511 Summary

• Provides a two-year abatement of all state and local ad valorem taxes for Alabama new small business employers formed after October 1, 2016.

• Defines an Alabama new small business employer as a business organization with its principal place of business in the state and having 50 or fewer employees during the tax year the abatement is claimed.

• Requires employers to apply to the Alabama Department of Revenue and receive approval to qualify for the abatement.

• Specifies that the tax abatement cannot reduce a taxpayer's liability below zero in any tax year and is non-transferable and non-refundable.

• Becomes effective October 1, 2016, following passage and approval by the Governor.