SB253 Summary

• Establishes tax incentives for broadband infrastructure investment in rural Alabama areas (defined as cities/towns with populations under 25,000) through a new Section 40-18-415.1 of the Alabama Code.

• Provides a nonrefundable, transferable income tax credit equal to 10 percent of new investment in qualified broadband network facilities, with annual per-taxpayer caps of $750,000 (for 10 Mbps download/1 Mbps upload speeds) or $1,400,000 (for 25 Mbps download/3 Mbps upload speeds).

• Grants a 10-year exemption from state ad valorem taxation on qualified broadband facilities and exemption from state sales and use taxes; local exemptions require approval from county or municipal governing bodies within 60 days of written request.

• Caps total annual income tax credits at $20,000,000 ($18,000,000 for rural projects, $2,000,000 for underserved areas) with excess credits carried forward up to 19 years; allows credits to be transferred to other taxpayers for a $1,000 per-transferee fee.

• Repeals Section 40-18-415.1 after fiscal year 2022 but preserves all credits and exemptions earned during the program's operation, including carried-forward credits.