HB120 Summary

• Establishes the Alabama Broadband Investment Maximization Act to exempt broadband equipment and supplies from state and local sales and use taxes.

• Exempts equipment, machinery, software, and infrastructure used to produce broadband communications services or provide Internet access, including wires, cables, fiber, antennas, switches, routers, modems, and related networking equipment.

• Excludes personal consumer electronics (smartphones, computers, tablets, consumer-grade modems, and Wi-Fi routers) from the broadband equipment exemption.

• Effective from October 1, 2023, through September 30, 2026, with possible extension by the Legislature.

• Violations punishable by fines of $500 to $2,000 and imprisonment of 6 months to 1 year.