AL HB350

Qualified angel investors may claim a 25% income tax credit on investments in qualified Alabama startups for tax years 2027-2031, with a maximum credit of $250,000 per investor per year

Annual program caps set at $5 million (2027), $10 million (2028), and $12 million for subsequent years, with at least 50% reserved for "priority impact businesses" in sectors like rural healthcare, agriculture, education, workforce development, and housing affordability

Qualified businesses must be Alabama-headquartered, have 100 or fewer employees, operate for 10 years or less, and primarily engage in manufacturing, technology, R&D, biotech, or agribusiness

Credits may be carried forward for up to five years if unused, and may be recaptured if the investment is sold within three years, the business relocates out of state, or fraud is discovered

Alabama Department of Commerce administers the program with Department of Revenue, with effective date of June 1, 2026