Compare versions

--- version:Introduced
+++ version:(document, no version)
@@ -1,1341 +1,10 @@
-HB393 INTRODUCED
-Page 0
-HB393
-119VR3Z-1
-By Representatives Lawrence, Faulkner, Chestnut, Daniels
-RFD: Economic Development and Tourism
-First Read: 05-Feb-26
-1
-2
-3
-4
-5
-119VR3Z-1 02/02/2026 KHF (F)KHF 2026-589
+FN-1197A3L-3
 Page 1
-First Read: 05-Feb-26
-SYNOPSIS:
-Under existing law, the state has established
-research and development corridors and grants as well
-as various tax abatements and incentives that include
-references to the now outdated Accelerate Alabama
-Strategic Economic Development Plan. These laws also
-include references to the 2012 North American Industry
-Classification System (NAICS) Codes used to classify
-business establishments by industry sector.
-This bill would remove references to the
-Accelerate Alabama Strategic Economic Development Plan
-and align relevant sections with the provisions of the
-Alabama Jobs Act.
-This bill would update NAICS Codes used to
-classify business establishments by industry sector,
-bringing them in line with the latest updates released
-in 2022.
-This bill would make nonsubstantive, technical
-revisions to update existing code language to current
-style.
-A BILL
-TO BE ENTITLED
-AN ACT
-1
-2
-3
-4
-5
-6
-7
-8
-9
-10
-11
-12
-13
-14
-15
-16
-17
-18
-19
-20
-21
-22
-23
-24
-25
-26
-27
-28
-HB393 INTRODUCED
-Page 2
-AN ACT
-Relating to economic development; to amend Sections
-11-66A-2 and 41-23-252, Code of Alabama 1975, regarding
-research and development corridors and grants, and Sections
-40-9B-3, 40-9G-1, and 40-18-372, Code of Alabama 1975,
-regarding tax abatements and incentives; to remove references
-to the outdated Accelerate Alabama Strategic Economic
-Development Plan; to update NAICS Code references to the
-latest update released in 2022; and to make nonsubstantive,
-technical revisions to update existing code language to
-current style.
-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
-Section 1.   Sections 11-66A-2, 40-9B-3, 40-9G-1,
-40-18-372, and 41-23-252, Code of Alabama 1975, are amended to
-read as follows:
-"§11-66A-2
-(a) The Legislature finds and determines the public
-good, welfare, and economy of the state are best served by
-providing and encouraging the development, growth,
-improvement, and support of new and creative economic
-opportunities for existing and future qualified enterprises to
-establish and continue projects in this state for innovative
-processes and products. These include specifically those
-business sectors expressly identified in Accelerate Alabama
-2.0, the strategic economic development plan developed by the
-Department of Commerce.
-(b) In furtherance of subsection (a) the legislative
-intent and public purpose of this chapter is:
-29
-30
-31
-32
-33
-34
-35
-36
-37
-38
-39
-40
-41
-42
-43
-44
-45
-46
-47
-48
-49
-50
-51
-52
-53
-54
-55
-56
-HB393 INTRODUCED
-Page 3
-intent and public purpose of this chapter is:
-(1) To provide authority to municipalities for the
-creation of research and development corridors with corporate
-authority and power to provide, in the discretion of the
-corridors, its resources; and
-(2) To provide authority to public entities to provide
-public resources to, or for the benefit of, corridors."
-"§40-9B-3
-(a) For purposes of this chapter, the following words
-and phrases mean:
-(1) ABATE, ABATEMENT. A reduction or elimination of a
-taxpayer's liability for tax or payments required to be made
-in lieu thereof. An abatement of transaction taxes imposed
-under Chapter 23  of this title , or payments required to be
-made in lieu thereof, shall relieve the seller from the
-obligation to collect and pay over the transaction tax as if
-the sale were to a person exempt, to the extent of the
-abatement, from the transaction tax.
-(2) ALTERNATIVE ENERGY RESOURCES. The definition given
-in Section 40-18-1.
-(3) CONSTRUCTION RELATED TRANSACTION TAXES. The
-transaction taxes imposed by Chapter 23  of this title , or
-payments required to be made in lieu thereof, on tangible
-personal property and taxable services incorporated into an
-industrial development property, the cost of which may be
-added to capital account with respect to the property,
-determined without regard to any rule which permits
-expenditures properly chargeable to capital account to be
-treated as current expenses.
-57
-58
-59
-60
-61
-62
-63
-64
-65
-66
-67
-68
-69
-70
-71
-72
-73
-74
-75
-76
-77
-78
-79
-80
-81
-82
-83
-84
-HB393 INTRODUCED
-Page 4
-treated as current expenses.
-(4) DATA PROCESSING CENTER. An establishment at which
-not less than 20 new jobs are located, the average annual
-total compensation, including benefits, of such new jobs to be
-not less than forty thousand dollars ($40,000) and such
-establishment is engaged in the provision of complete
-processing and specialized reports from data, the provision of
-automated data processing and data entry services, the
-provision of an infrastructure for hosting or data processing
-services, the provision of specialized hosting activities, the
-provision of application service provisioning, the provision
-of general time-share mainframe facilities, the provision or
-operation of computer equipment or enabling software for the
-processing, storage, backup, retrieval, communication, or
-distribution of data, or some combination of the foregoing,
-without regard to whether any other activities are conducted
-at the establishment.
-(5) EDUCATION TAXES. Ad valorem taxes, or payments
-required to be made in lieu thereof, that must, pursuant to
-the Constitution of Alabama of 1901 2022 , as amended,
-legislative act, or the resolution or other action of the
-governing board authorizing the tax, be used for educational
-purposes or for capital improvements for education and local
-construction related transaction taxes levied for educational
-purposes or for capital improvements for education.
-(6) HEADQUARTERS FACILITY. Any trade or business
-described in NACIS NAICS  Code 551114, at which not less than 50
-new jobs are located.
-(7) HYDROPOWER PRODUCTION. The definition given in
-85
-86
-87
-88
-89
-90
-91
-92
-93
-94
-95
-96
-97
-98
-99
-100
-101
-102
-103
-104
-105
-106
-107
-108
-109
-110
-111
-112
-HB393 INTRODUCED
-Page 5
-(7) HYDROPOWER PRODUCTION. The definition given in
-Section 40-18-1.
-(8) INDUCEMENT. Refers to an agreement, or an
-"inducement agreement," entered into between a private user
-and a public authority or county or municipal government
-and/or a resolution or other official action, an "inducement
-resolution," "inducement letter," or "official action" adopted
-by a public authority or county or municipal government, in
-each case expressing, among other things, the present intent
-of such public authority or county or municipal government to
-issue bonds in connection with the private use property
-therein described. Notwithstanding any provision in this
-chapter to the contrary, neither an inducement nor a request
-for inducement shall be required to apply for, grant, or
-receive any abatement of taxes allowed to be abated under this
-chapter.
-(9) INDUSTRIAL DEVELOPMENT PROPERTY. Real and/or
-personal property acquired in connection with establishing or
-expanding an industrial or research enterprise in Alabama.
-(10) INDUSTRIAL OR RESEARCH ENTERPRISE.
-a. Any trade or business predominately predominantly
-consisting of any one or more of the following:
-1. Described by NAICS Code 1133, 115111, 2121, 22111,
-221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862,
-48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511,
-5121 (other than 51213), 51221 5122, 513 , 517, 518 (without
-regard to the premise that data processing and related
-services be performed in conjunction with a third party),
-51913 51929 , 52232, 54133 (if predominantly in furtherance of
-113
-114
-115
-116
-117
-118
-119
-120
-121
-122
-123
-124
-125
-126
-127
-128
-129
-130
-131
-132
-133
-134
-135
-136
-137
-138
-139
-140
-HB393 INTRODUCED
-Page 6
-51913 51929 , 52232, 54133 (if predominantly in furtherance of
-another activity described in this article), 54134 (if
-predominantly in furtherance of another activity described in
-this article), 54138, 5415, 541614, 5417, 55 (if not for the
-production of electricity), 561422 (other than establishments
-that originate telephone calls), 562213, 56291, 56292, 611512,
-927, or 92811.
-2. A target of the state's economic development efforts
-pursuant to either of the following:
-(i) The Accelerate Alabama Strategic Economic
-Development Plan adopted in January 2012 by the Alabama
-Economic Development Alliance, created by Executive Order
-Number 21 of the Governor on July 18, 2011, or any amended
-version or successor document thereto; or
-(ii) A type listed in a regulation adopted by the
-Department of Commerce, other than a regulation submitted as
-an emergency rule.
-Notwithstanding the foregoing, the activities described
-in this definition shall not predominantly concern farming
-activities involving trees, animals , or crops, nor the retail
-sale of tangible personal property or services. This provision
-shall not be deemed to exclude customer service centers or
-call centers otherwise allowed or provided for herein.
-b. With respect to abatements granted in accordance
-with Section 40-9B-9, and only with respect to such
-abatements, "industrial or research enterprise" means any
-trade or business described in NAICS Code 493, 488310, or
-488320, when such trade or business is conducted on premises
-in which the Alabama State Port Authority has an ownership,
-141
-142
-143
-144
-145
-146
-147
-148
-149
-150
-151
-152
-153
-154
-155
-156
-157
-158
-159
-160
-161
-162
-163
-164
-165
-166
-167
-168
-HB393 INTRODUCED
-Page 7
-in which the Alabama State Port Authority has an ownership,
-leasehold, or other possessory interest and such premises are
-used as part of the operations of the Alabama State Port
-Authority.
-c. "Industrial or research enterprise" includes the
-above-described trades and business and any others as may
-hereafter be reclassified in any subsequent publication of the
-NAICS or similar industry classification system developed in
-conjunction with the United States Department of Commerce or
-Office of Management and Budget.
-d. "Industrial or research enterprise" also includes
-any underground natural gas storage facility which is located
-in the Gulf Opportunity Zone, as that phrase is defined in the
-Gulf Opportunity Zone Act of 2005, developed from existing
-geologic reservoirs, including, without limitation, salt
-domes, and placed in service on or before December 31, 2013.
-e. "Industrial or research enterprise" also includes
-any plant, property, or facility that meets both of the
-following:
-1. It produces electricity from:
-(i) Alternative energy resources and has capital costs
-of at least one hundred million dollars ($100,000,000); or
-(ii) Hydropower production and has capital costs of at
-least five million dollars ($5,000,000).
-2. All or a portion of the plant, property, or facility
-is owned by one or more of the following:
-(i) A utility described in Section 37-4-1(7)a. ,
-(ii) An entity organized under the provisions of
-Chapter 6 of Title 37 ,.
-169
-170
-171
-172
-173
-174
-175
-176
-177
-178
-179
-180
-181
-182
-183
-184
-185
-186
-187
-188
-189
-190
-191
-192
-193
-194
-195
-196
-HB393 INTRODUCED
-Page 8
-Chapter 6 of Title 37 ,.
-(iii) An authority both organized and existing pursuant
-to the provisions of Chapter 50A of Title 11 and subject to
-the payments required to be made in lieu of ad valorem, sales,
-use, license, and severance taxes imposed by Section 11-50A-7 ,
-or.
-(iv) An entity in which one or more of the foregoing
-owns an interest.
-f. "Industrial or research enterprise" also includes
-any headquarters facility.
-g. "Industrial or research enterprise" also includes
-any data processing center.
-h. "Industrial or research enterprise" also includes
-any research and development facility.
-i. "Industrial or research enterprise" also includes
-any renewable energy facility.
-j. "Industrial or research enterprise" also includes
-any tourism destination attraction.
-(11) MAJOR ADDITION. Any addition to an existing
-industrial development property that equals the lesser of: 30
-percent of the original cost of the industrial development
-property or two million dollars ($2,000,000). For purposes of
-this subsection, the original cost of existing industrial
-development property shall be the amount of industrial
-development property with respect to which an abatement was
-granted under this chapter when the property was constructed,
-or if the existing industrial development property was
-constructed before January 1, 1993, the maximum amount that
-would have been allowed if the provisions of this chapter had
-197
-198
-199
-200
-201
-202
-203
-204
-205
-206
-207
-208
-209
-210
-211
-212
-213
-214
-215
-216
-217
-218
-219
-220
-221
-222
-223
-224
-HB393 INTRODUCED
-Page 9
-would have been allowed if the provisions of this chapter had
-applied at the time it was constructed. Only property that
-constitutes industrial development property shall be taken
-into account in making the determination in the previous
-sentence. Major addition shall include any addition costing at
-least two million dollars ($2,000,000) which constitutes an
-industrial or research enterprise, regardless of whether added
-to an existing industrial development property.
-(12) MAXIMUM EXEMPTION PERIOD. Except as provided in
-Section 40-9B-11, a period equal to the shorter of:
-a. Either of the following:
-1. Twenty years from and after: (i) Thethe date of
-initial issuance by a county, city, or public authority of
-bonds to finance any costs of a private use property ,; or (ii)
-Ifif no such bonds are ever issued, the later of: A. Thethe
-date on which title to the property was acquired by or vested
-in the county, city, or public authority ,; or B. Thethe date
-on which the property is or becomes owned, for federal income
-tax purposes, by a private user ; or .
-2. Exclusively with respect to one or more private
-users of a data processing center, the following:
-(i) A period of 10 years from and after the date on
-which private use property is or becomes owned, for federal
-income tax purposes, by such private user or users (including
-the lessor and any lessee with respect to co-location
-centers), if the aggregate capital investment in the data
-processing center by such private user or users does not
-exceed two hundred million dollars ( $200,000,000 ) within 10
-years from the date on which a private user commences the
-225
-226
-227
-228
-229
-230
-231
-232
-233
-234
-235
-236
-237
-238
-239
-240
-241
-242
-243
-244
-245
-246
-247
-248
-249
-250
-251
-252
-HB393 INTRODUCED
-Page 10
-years from the date on which a private user commences the
-acquisition, construction, and equipping of the data
-processing center,
-(ii) A period of 20 years from and after the date on
-which private use property is or becomes owned, for federal
-income tax purposes, by such private user or users (including
-the lessor and any lessee with respect to co-location
-centers), if the aggregate capital investment in the data
-processing center by such private user or users exceeds  two
-hundred million dollars ($200,000,000 ) but is not greater than
-four hundred million dollars ($400,000,000 ) within 10 years
-from the date on which a private user commences the
-acquisition, construction, and equipping of the data
-processing center , or .
-(iii) A period of 30 years from and after the date on
-which private use property is or becomes owned, for federal
-income tax purposes, by such private user or users (including
-the lessor and any lessee with respect to co-location
-centers), if the aggregate capital investment in the data
-processing center by such private user or users exceeds  two
-hundred million dollars ($200,000,000 ) within 10 years from
-the date on which a private user commences the physical work
-of constructing and equipping the data processing center and
-exceeds four hundred million dollars ( $400,000,000 ) within 20
-years from the date on which a private user commences the
-acquisition, construction, and equipping of the data
-processing center.
-For purposes of this subparagraph 2., a private user's
-aggregate capital investment in a data processing center shall
-253
-254
-255
-256
-257
-258
-259
-260
-261
-262
-263
-264
-265
-266
-267
-268
-269
-270
-271
-272
-273
-274
-275
-276
-277
-278
-279
-280
-HB393 INTRODUCED
-Page 11
-aggregate capital investment in a data processing center shall
-include all real and personal property comprising a data
-processing center, the costs of which may be capitalized for
-federal income tax purposes. In no event shall abatements of
-construction related transaction taxes or noneducational ad
-valorem taxes granted for a data processing center apply
-beyond the expiration of the applicable maximum exemption
-period; or
-b. The period ending on the date on which the property
-has ceased, for 6six consecutive months, to be used in the
-active conduct of an industrial or research enterprise.
-(13) MORTGAGE AND RECORDING TAXES. The taxes imposed by
-Chapter 22  of this title .
-(14) NAICS CODE. Any sector, subsector, industry group,
-industry or national industry of the 2012 2022  North American
-Industry Classification System, or any similar classification
-system developed in conjunction with the United States
-Department of Commerce or Office of Management and Budget.
-(15) NONEDUCATIONAL AD VALOREM TAXES. Ad valorem taxes,
-or payments required to be made in lieu thereof, imposed by
-the state, counties, municipalities, and other taxing
-jurisdictions of Alabama that are not required to be used for
-educational purposes or for capital improvements for
-education.
-(16) PERSON. Includes any individual, partnership,
-trust, estate, or corporation.
-(17) PRIVATE USER. Any individual, partnership, or
-corporation organized for profit that is or will be treated as
-the owner of private use property for federal income tax
-281
-282
-283
-284
-285
-286
-287
-288
-289
-290
-291
-292
-293
-294
-295
-296
-297
-298
-299
-300
-301
-302
-303
-304
-305
-306
-307
-308
-HB393 INTRODUCED
-Page 12
-the owner of private use property for federal income tax
-purposes, any entity organized under Chapter 6 of Title 37,
-and any authority both organized and existing pursuant to
-Chapter 50A of Title 11 and subject to the payments required
-to be made in lieu of ad valorem, sales, use, license, and
-severance taxes imposed by Section 11-50A-7.
-(18) PRIVATE USE INDUSTRIAL PROPERTY. Private use
-property that also constitutes industrial development
-property.
-(19) PRIVATE USE PROPERTY. Any real and/or personal
-property which is or will be treated as owned by a private
-user for federal income tax purposes even though title may be
-held by a public authority or municipal or county government;
-any real and/or personal property which is owned by any entity
-organized under Chapter 6 of Title 37; and any real and/or
-personal property which is owned by any authority both
-organized and existing pursuant to Chapter 50A of Title 11,
-and subject to the payments required to be made in lieu of ad
-valorem, sales, use, license, and severance taxes imposed by
-Section 11-50A-7.
-(20) PUBLIC AUTHORITY. A corporation created for public
-purposes pursuant to a provision of the Constitution of
-Alabama of 1901 2022 , or a general or local law that authorized
-it to issue bonds, the interest on which is exempt from the
-Alabama income tax, as in effect on May 21, 1992.
-(21) PUBLIC INDUSTRIAL AUTHORITY. A public authority
-authorized to issue bonds to acquire, construct, equip, or
-finance industrial development property.
-(22) RENEWABLE ENERGY FACILITY. Any plant, property, or
-309
-310
-311
-312
-313
-314
-315
-316
-317
-318
-319
-320
-321
-322
-323
-324
-325
-326
-327
-328
-329
-330
-331
-332
-333
-334
-335
-336
-HB393 INTRODUCED
-Page 13
-(22) RENEWABLE ENERGY FACILITY. Any plant, property, or
-facility that either:
-a. Produces electricity or natural gas, in whole or in
-part, from biofuels as such term is defined in Section
-2-2-90(c)(2) or from renewable energy resources as such term
-is defined in Section 40-18-1(30) with the exception that
-hydropower production shall be excluded from such definition;
-or
-b. Produces biofuel as such term is defined in Section
-2-2-90(c) (2).
-(23) RESEARCH AND DEVELOPMENT FACILITY. An
-establishment engaged in conducting original investigations
-undertaken on a systematic basis to gain new knowledge or
-applying research findings or other scientific knowledge to
-create new or significantly improved products or processes, or
-both.
-(24) STATEMENT OF INTENT. A written statement of intent
-to claim an abatement provided in this chapter, or to petition
-for local tax abatement, relating to an industrial or research
-enterprise described in paragraph e. of subdivision (10) e. of
-this subsection  that is filed with the Department of Revenue
-at any time prior to the date on which the industrial or
-research enterprise described in paragraph e. of subdivision
-(10) e. of this subsection is placed in service in accordance
-with such procedures and on such form or forms as may be
-prescribed by the Department of Revenue. Such statement of
-intent shall contain a description of the industrial or
-research enterprise described in paragraph e. of subdivision
-(10) e. of this subsection ; the date on which the acquisition,
-337
-338
-339
-340
-341
-342
-343
-344
-345
-346
-347
-348
-349
-350
-351
-352
-353
-354
-355
-356
-357
-358
-359
-360
-361
-362
-363
-364
-HB393 INTRODUCED
-Page 14
-(10) e. of this subsection ; the date on which the acquisition,
-construction, installation, or equipping of the industrial or
-research enterprise described in paragraph e. of subdivision
-(10) e. of this subsection was commenced or is expected to
-commence; the actual or, if not known, the estimated capital
-costs of the industrial or research enterprise described in
-paragraph e. of subdivision (10) e. of this subsection ; the
-number of new employees to be employed at the industrial or
-research enterprise described in paragraph e. of subdivision
-(10) e. of this subsection ; and any other information required
-by the Department of Revenue.
-(25) TOURISM DESTINATION ATTRACTION. a. A commercial
-enterprise which is open to the public not less than 120 days
-during a calendar year and is designed to attract visitors
-from inside or outside of the State of Alabama, typically for
-its inherent cultural value, historical significance, natural
-or man-made beauty, or entertainment or amusement
-opportunities. The term shall include, but not be limited to,
-a cultural or historical site; a botanical garden; a museum; a
-wildlife park or aquarium open to the public that cares for
-and displays a collection of animals or fish; an amusement
-park; a convention hotel and conference center; a water park;
-or a spectator venue or arena.
-b. A tourism destination attraction shall not include a
-facility primarily devoted to the retail sale of goods; a
-shopping center; a restaurant; a movie theater; a bowling
-alley; a fitness center; a miniature golf course; or a
-nightclub. Provided, however, that the The capital costs of the
-construction of a tourism destination attraction may include
-365
-366
-367
-368
-369
-370
-371
-372
-373
-374
-375
-376
-377
-378
-379
-380
-381
-382
-383
-384
-385
-386
-387
-388
-389
-390
-391
-392
-HB393 INTRODUCED
-Page 15
-construction of a tourism destination attraction may include
-the capital costs associated with the construction of any
-retail establishment, restaurant or other portion of the
-tourism destination attraction. The term also does not include
-any gaming facility or establishment that the Secretary of the
-Department of Commerce deems to be serving the local
-community.
-(b) The abatements of ad valorem taxes, and payments in
-lieu thereof, allowed by amendments to this section by Act
-2008-275 shall become effective for projects for which
-statements of intent are filed after December 31, 2011. No ad
-valorem taxes, or payments in lieu thereof, shall be abated
-for periods prior to January 1, 2012. The other abatements
-allowed by amendments made to this section by Act 2008-275
-shall become effective after December 31, 2011.
-For a qualifying industrial or research enterprise
-described in Section 40-9B-3(a)(10)j., the approval of the
-abatement of a specified ad valorem tax or construction
-related tax levied or imposed by a county or municipality, or
-payments required to be made in lieu thereof, shall take
-effect only upon adoption of a resolution by the governing
-body of that county or municipality approving such abatement
-or abatements."
-"§40-9G-1
-For purposes of the chapter, the following words and
-phrases shall have the following meaning meanings :
-(1) APPROVED ACTIVITY. The conduct of an activity that
-is predominantly any one or more of the following:
-a. Described by NAICS Code 1133, 115111, 2121, 22111,
-393
-394
-395
-396
-397
-398
-399
-400
-401
-402
-403
-404
-405
-406
-407
-408
-409
-410
-411
-412
-413
-414
-415
-416
-417
-418
-419
-420
-HB393 INTRODUCED
-Page 16
-a. Described by NAICS Code 1133, 115111, 2121, 22111,
-221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862,
-48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511,
-5121 (other than 51213), 51221 5122, 513 , 517, 518 (without
-regard to the premise that data processing and related
-services be performed in conjunction with a third party),
-51913 51929 , 52232, 54133 (if predominantly in furtherance of
-another activity described in this chapter), 54134 (if
-predominantly in furtherance of another activity described in
-this chapter), 54138, 5415, 541614, 5417, 55 (if not for the
-production of electricity), 561422 (other than establishments
-that originate telephone calls), 562213, 56291, 56292, 611512,
-927, or 92811.
-b. The production of biofuel as such term is defined in
-Section 2-2-90(c)(2).
-c. The conduct of original investigations undertaken on
-a systematic basis to gain new knowledge or the application of
-research findings or other scientific knowledge to create new
-or significantly improved products or processes.
-d. The national or regional headquarters for a company
-that conducts significant business operations outside the
-state and that will serve as the principal office of the
-company's principal operating officer with chief
-responsibility for the daily business operations of the
-company.
-e. A target of the state's economic development efforts
-pursuant to either of the following:
-(i) The Accelerate Alabama Strategic Economic
-Development Plan adopted in January 2012 by the Alabama
-421
-422
-423
-424
-425
-426
-427
-428
-429
-430
-431
-432
-433
-434
-435
-436
-437
-438
-439
-440
-441
-442
-443
-444
-445
-446
-447
-448
-HB393 INTRODUCED
-Page 17
-Development Plan adopted in January 2012 by the Alabama
-Economic Development Alliance, created by Executive Order
-Number 21 of the Governor on July 18, 2011, or any amended
-version or successor document thereto; or
-(ii) A type listed in a regulation adopted by the
-Department of Commerce, other than a regulation submitted as
-an emergency rule.
-Notwithstanding the foregoing, an approved activity
-shall not predominantly concern farming activities involving
-trees, animals, or crops, nor the retail sale of tangible
-personal property or services. This provision shall not be
-deemed to exclude customer service centers, call centers , or
-headquarters otherwise allowed by this subdivision.
-(2) COMPANY. Anyone or anything which has the powers to
-own a project and have employees.
-(3) NAICS CODE. Any sector, subsector, industry group,
-industry or national industry of the 2012 2022  North American
-Industry Classification System, or any similar classification
-system developed in conjunction with the United States
-Department of Commerce or Office of Management and Budget.
-(4) QUALIFYING PROJECT. Any project : a. that proposes
-to invest in capital expenditures that equal or exceed two
-million dollars ( $2,000,000 ) as part of any addition,
-expansion, improvement, renovation, re-opening, or
-rehabilitation of a facility, or replacement of any existing
-equipment or tangible personal property; b. that predominantly
-involves an approved activity; and c. for which no project
-agreement has been entered into with the Governor for the
-provision of other incentives.
-449
-450
-451
-452
-453
-454
-455
-456
-457
-458
-459
-460
-461
-462
-463
-464
-465
-466
-467
-468
-469
-470
-471
-472
-473
-474
-475
-476
-HB393 INTRODUCED
-Page 18
-provision of other incentives.
-(5) UTILITY TAXES. The taxes imposed by Sections
-40-21-82 and 40-21-102."
-"§40-18-372
-A qualifying project must be found by the Secretary of
-Commerce to conduct an activity specified in subdivision (1)
-and to meet the minimum standard set forth in subdivision (2).
-(1) A qualifying project must predominantly conduct an
-activity that is any one or more of the following:
-a. Described by NAICS Code 1133, 115111, 2121, 22111,
-221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862,
-48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511,
-5121 (other than 51213), 51221 5122, 513 , 517, 518 (without
-regard to the premise that data processing and related
-services be performed in conjunction with a third party),
-51913 51929 , 52232, 54133 (if predominantly in furtherance of
-another activity described in this article), 54134 (if
-predominantly in furtherance of another activity described in
-this article), 54138, 5415, 541614, 5417, 55 (if not for the
-production of electricity), 561422 (other than establishments
-that originate telephone calls), 562213, 56291, 56292, 611512,
-927, or 92811.
-b. The production of biofuel as such term is defined in
-Section 2-2-90(c)(2).
-c. A renewable energy generation facility that is owned
-by one or more electric providers, as the term is defined in
-Section 37-16-3, for providing electric service at retail in
-Alabama. For purposes of this subdivision, an "electric
-provider" shall also include an authority as defined in
-477
-478
-479
-480
-481
-482
-483
-484
-485
-486
-487
-488
-489
-490
-491
-492
-493
-494
-495
-496
-497
-498
-499
-500
-501
-502
-503
-504
-HB393 INTRODUCED
-Page 19
-provider" shall also include an authority as defined in
-Section 11-50A-1. In the case of an electric provider that is
-also a tax-exempt organization under the Internal Revenue
-Code 26 U.S.C. § 501 , notwithstanding Section 40-18-376(b)(3),
-any investment credit may be transferred for the entire term
-of the project agreement, as approved by the Governor. A
-"renewable energy generation facility" as used in this
-subdivision shall include any tangible property that is part
-of renewable energy generation, including any addition,
-modification, expansion, or upgrade to transmission or
-distribution systems that is required to accommodate the
-interconnection of renewable energy generation.
-d. The conduct of original investigations undertaken on
-a systematic basis to gain new knowledge or the application of
-research findings or other scientific knowledge to create new
-or significantly improved products or processes.
-e. The national or regional headquarters for a company
-that conducts significant business operations outside the
-state and that will serve as the principal office of the
-company’s principal operating officer with chief
-responsibility for the daily business operations of the
-company.
-f. A target of the state's economic development efforts
-pursuant to the Accelerate Alabama Strategic Economic
-Development Plan adopted in January 2012 by the Alabama
-Economic Development Alliance, created by Executive Order
-Number 21 of the Governor on July 18, 2011, or any amended
-version or successor document thereto.
-g. A type listed in a rule adopted by the Department of
-505
-506
-507
-508
-509
-510
-511
-512
-513
-514
-515
-516
-517
-518
-519
-520
-521
-522
-523
-524
-525
-526
-527
-528
-529
-530
-531
-532
-HB393 INTRODUCED
-Page 20
-g. A type listed in a rule adopted by the Department of
-Commerce, other than an emergency rule.
-Notwithstanding the foregoing, a qualifying project may
-not engage predominantly in farming activities involving
-trees, animals, or crops, and a qualifying project may not
-engage predominantly in the retail sale of tangible personal
-property or services, and may not be a shopping center,
-restaurant, movie theater, bowling alley, fitness center,
-miniature golf course, nightclub, gaming facility, or
-establishment serving the local community. However, if the
-excluded activities are not the predominant activity at the
-project, and if the project is otherwise a qualifying project,
-then the project agreement may provide that the capital
-investment may include costs related to excluded activities
-that are ancillary to the primary business conducted as part
-of the project. This provision shall not be deemed to exclude
-customer service centers, call centers , or headquarters
-otherwise allowed by this subdivision.
-(2) A qualifying project shall create a significant
-number of new jobs for the area in which the qualifying
-project shall be located. Absent a finding of extraordinary
-circumstances by the Secretary of Commerce, a qualifying
-project shall employ either of the following number of new
-employees:
-a. Any number of new employees, for a qualifying
-project in which the predominant activity involves chemical
-manufacturing, data centers, renewable energy generation,
-engineering, design, or research, metal/machining technology
-or toolmaking; or
-533
-534
-535
-536
-537
-538
-539
-540
-541
-542
-543
-544
-545
-546
-547
-548
-549
-550
-551
-552
-553
-554
-555
-556
-557
-558
-559
-560
-HB393 INTRODUCED
-Page 21
-or toolmaking; or
-b. At least 50 new employees, for all other qualifying
-projects."
-"§41-23-252
-For the purpose of this article, the following words
-and phrases shall have the following meanings:
-(1) ADECA. The Alabama Department of Economic and
-Community Affairs.
-(2) ALABAMA RESEARCH ENTITY. One or more of the
-following:
-a. A public or private university in the state in
-partnership with a private sector applicant.
-b. A university research foundation affiliated with a
-public or private university in the state in partnership with
-a private sector applicant.
-c. A public two-year college in the state in
-partnership with a private sector applicant.
-d. A publicly owned hospital in the state in
-partnership with a private sector applicant.
-e. An entity duly formed, domiciled, or qualified to do
-business in the state in partnership with a private sector
-applicant and that meets each of the following criteria:
-1. Is exempt from federal income tax under 26 U.S.C. §
-Section  501(c)(3)  of the Internal Revenue Code of 1986 , as
-amended.
-2. Is predominantly engaged in research and
-non-commercial noncommercial  development activities undertaken
-for the purpose of discovering information that is
-technological or biotechnological in nature, involves a
-561
-562
-563
-564
-565
-566
-567
-568
-569
-570
-571
-572
-573
-574
-575
-576
-577
-578
-579
-580
-581
-582
-583
-584
-585
-586
-587
-588
-HB393 INTRODUCED
-Page 22
-technological or biotechnological in nature, involves a
-process of experimentation, and the application of which is
-intended to be used in the development of a new or improved
-product, service, or treatment.
-3. Has its headquarters and principal place of business
-in the state.
-4. Has, or is anticipated to have, at least 75 percent
-of its property and payroll in Alabama, using the property and
-payroll factor calculations found in Title 40.
-(3) APPROVED ACTIVITY. The conduct of an activity that
-is predominantly any one or more of the following:
-a. Described by NAICS Code 1133, 115111, 2121, 22111,
-221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862,
-48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511,
-5121 (other than 51213), 51221 5122, 513 , 517, 518 (without
-regard to the premise that data processing and related
-services be performed in conjunction with a third party),
-51913 51929 , 52232, 54133 (if predominantly in furtherance of
-another activity described in this article), 54134 (if
-predominantly in furtherance of another activity described in
-this article), 54138, 5415, 541614, 5417, 55 (if not for the
-production of electricity), 561422 (other than establishments
-that originate telephone calls), 562213, 56291, 56292, 611512,
-927, or 92811.
-b. The production of biofuel as the term is defined in
-Section 2-2-90(c)(2).
-c. A target of the state's economic development efforts
-pursuant to either of the following:
-1. The Accelerate Alabama Strategic Economic
-589
-590
-591
-592
-593
-594
-595
-596
-597
-598
-599
-600
-601
-602
-603
-604
-605
-606
-607
-608
-609
-610
-611
-612
-613
-614
-615
-616
-HB393 INTRODUCED
-Page 23
-1. The Accelerate Alabama Strategic Economic
-Development Plan adopted in January 2012 by the Alabama
-Economic Development Alliance, created by Executive Order
-Number 21 of the Governor on July 18, 2011, or any amended
-version or successor document.
-2. A type listed in a regulation adopted by the
-Department of Commerce.
-(4) NAICS CODE. Any sector, subsector, industry group,
-industry, or national industry of the 2012 2022  North American
-Industry Classification System, or any similar classification
-system developed in conjunction with the United States
-Department of Commerce or Office of Management and Budget.
-(5) QUALIFIED RESEARCH. The meaning given in 26 U.S.C.
-§ 41(d), if conducted in Alabama in pursuit of an approved
-activity. In applying any terms in 26 U.S.C. § 41, "qualified
-research" shall have the meaning given herein."
-Section 2.  This act shall become effective on June 1,
-2026.
-617
-618
-619
-620
-621
-622
-623
-624
-625
-626
-627
-628
-629
-630
-631
-632
-633
+FISCAL NOTE
+House Bill 393
+Committee: Fiscal Responsibility and
+Economic Development
+Sponsor: Representative Kelvin Lawrence
+Analyst: Jennifer Farish Date: 03/13/2026
+House Bill 393 as passed the House of Representatives would not directly affect state or local
+funding.