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AL HB540
Bill
Status
5/30/2019
Primary Sponsor
William Poole
Click for details
AI Summary
HB540 - Alabama Incentives Modernization Act
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Establishes new economic development incentives targeting rural and low-growth counties (defined as counties with population of 50,000 or less) and high-tech companies to increase economic diversity statewide.
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Creates enhanced tax credits for technology companies meeting specific criteria, including a 1.5% investment credit and additional 2.0% jobs credit, with reduced employee thresholds (5 employees minimum instead of 25).
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Introduces impact investment tax credits for opportunity zone funds investing in Alabama, with up to $50 million cumulative credits available for qualified funds investing in rural development, workforce training, and technology startups.
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Provides capital gains tax exclusion for qualified employees and investment funds when selling interests in technology companies that relocate to or expand in Alabama over specified periods.
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Modifies insurance premium tax distribution to direct Education Trust Fund credits to the State General Fund starting fiscal year 2021, and allows investment credits to offset various state taxes including income, financial institution excise, insurance premium, and utility taxes.
Legislative Description
Taxation, incentives for attraction of new and expanding business including rural areas, investment credit for income tax, financial institution excise tax, insurance premium tax, utility tax, further incentives for rural areas as defined, purchase of credits, incentives for high-tech companies, Ala. Incentives Modernization Act, Secs. 40-18-6.1, 40-18-8.1, 40-18-376.3 added; Secs. 40-18-376, 40-18-376.1, 40-18-410, 40-18-411, 40-18-412, 40-18-413, 40-18-414 am'd.
Taxation
Last Action
Forwarded to Governor on May 30, 2019 at 4:12 p.m. on May 30, 2019.
5/30/2019