SB260 Summary

• Amends Alabama tax increment district law to provide clarification and technical updates to existing provisions governing project costs, tax increment bases, and tax collection procedures.

• Expands eligible district categories to include Major 21st Century Manufacturing Zones (minimum 250 contiguous acres with $100 million+ capital expenditure anticipated) and allows enhanced use lease areas at military installations.

• Allows public entities to create successor tax increment districts that continue programs from expiring districts and permits mutual agreement to use original tax base valuation without redetermination.

• Extends expenditure periods to up to 15 years for enhanced use lease areas and 10 years for Class 3 municipalities, and extends the period taxing authorities must contribute tax increments from 3 years to 5 years unless specific conditions are met.

• Clarifies that private entity improvements in Major 21st Century Manufacturing Zones may be included as project costs when funded by public entity grants, and adds restrictions preventing expansion of municipal powers beyond constitutional limits.