AL HB608

Creates a 10% income tax credit for qualified research expenses for universities, non-profit research institutes, and early-stage life sciences companies, with a 15% credit rate for collaborative research with in-state academic institutions

Start-up firms (3 years or fewer) and small firms (fewer than 50 employees) may elect a refundable or transferable $250,000 tax credit instead of the percentage-based credit

Tax credits apply to tax years from January 1, 2027 through December 31, 2031, with a $30 million annual program cap; unused credits may be carried forward up to five years

Qualified research expenses include wages, contract research, equipment, and clinical trial costs consistent with federal R&D tax credit definitions (26 U.S.C. § 41)

Department of Revenue must publish annual reports on applications received, credits issued, total R&D investment supported, and geographic distribution of recipients