HB 1 Summary

• Establishes a new project category (Section 57-75-5(f)(xxxii)) for enterprises manufacturing and assembling battery cells for electric commercial vehicles and industrial applications, requiring $1.9 billion minimum capital investment and 2,000 new full-time jobs at minimum $65,564 average salary.

• Authorizes up to $482 million in state general obligation bonds for battery cell manufacturing projects and allows flexible contracting methods exempt from competitive bidding requirements under Section 31-7-13.

• Provides sales tax exemptions, franchise tax fee-in-lieu agreements (expiring 2028), and 10-year income tax exemptions for qualified battery cell projects and their affiliates.

• Grants counties and public agencies authority to provide infrastructure support, real property acquisition, utility agreements, and periodic grants (up to 30 years) for battery cell manufacturing projects without standard appraisal requirements.

• Protects battery cell project sites from surface and subsurface mineral exploration activities and oil/gas drilling, and creates special contracting procedures allowing projects to participate in selecting contractors and using design-build methods.