AL HB331

Allows automobile tire manufacturers operating in Alabama a tax credit of $1 per tire originally manufactured in the state against state income tax starting January 1, 2021.

Defines eligible manufacturers as those classified under NAICS Code 326211 and limits credits to tires manufactured in Alabama that are not retreads.

Caps cumulative annual tax credits at $5,000,000, with the Department of Revenue responsible for pro-rata distribution if credits exceed the limit.

Permits tax credits to be transferred at minimum 85% of present value with a $1,000 transfer fee per transferee, and credits cannot be retransferred after initial transfer.

Tax credits continue through the 2026 tax year unless extended by the Legislature, and manufacturers must certify the number of tires manufactured annually to claim credits.