SB152 Summary

• Authorizes the Alabama Innovation Corporation to be known as "Innovate Alabama" and amends residency requirements for Small Business Innovation Research and Small Business Technology Transfer Research grant recipients to require majority (rather than 75 percent) employee residence in Alabama and majority of top executives to reside in Alabama within 12 months.

• Creates the Innovating Alabama tax credit program allowing economic development organizations to claim tax credits for creating, operating, or supporting technology accelerators and programs for innovative companies meeting specified criteria.

• Establishes a $25 million annual cumulative funding limit for Innovating Alabama tax credits (beginning January 1, 2023) with at least $10 million reserved for innovative company programs, with credits capped at 50 percent of taxpayer's tax liability and carryable forward for five years.

• Defines eligible projects including technology accelerators and programs supporting for-profit businesses with fewer than 15 employees and under $1 million in gross revenues, or businesses at least 51 percent owned by women or African Americans with fewer than 75 employees.

• Exempts working groups, task forces, and subcommittees of Innovate Alabama from Alabama Open Meetings Act requirements and establishes July 31, 2028 deadline for tax credit applications unless extended by Legislature.