SB125 Summary

• Extends the Alabama Jobs Act incentives sunset date from December 31, 2020 to July 31, 2023, and increases the annual cap on outstanding jobs act incentives to $325 million for 2021 and $350 million for 2022, with $20 million reserved for targeted or jumpstart counties.

• Reestablishes the Growing Alabama Credit (repealed after fiscal year 2020) allowing it to be applied against income taxes, financial institution excise taxes, and insurance premium taxes, with a $20 million annual cap and sunset date of December 31, 2023.

• Permits Growing Alabama Credits to be claimed by S corporation owners and partnership members, enables economic development organizations to apply for funding, and requires 25 percent of credits be reserved for targeted or jumpstart counties.

• Increases jobs credits for minority-owned and woman-owned businesses from 3 percent to 4 percent of wages, adds 4 percent jobs credit for pharmaceutical and medical research/development/manufacturing companies, and extends investment credits to technology companies.

• Modifies Alabama Port Credit to include Vehicle Equivalent Unit (VEU) as a shipping measure for automotive industry cargo at $2.91 per VEU, matching existing credit rates for TEUs and net tons.