Alabama State Capital

The Made in Alabama Jobs Incentive Package took a big step forward in the Alabama Legislature with House passage of three crucial economic development bills in the package.

The three bills that were passed (HB 58, 57 and 59), along with two more that are still in the works, will enact a major shift in Alabama economic development incentives to post-performance tax credits based on tax revenue generated by projects.

HB 58 – The Alabama Jobs Act starts off by repealing various incentives such as the capital credit that are currently offered by the state to companies. The bill replaces the existing incentives with a jobs credit for qualifying business projects that create new jobs. The job creation incentives offered would be three percent of the company’s previous year’s wages paid to the new employees. An investment credit likewise offers 1.5 percent of an eligible capital investment for a period of ten years.

HB 57 – The Alabama Veterans and Rural Jobs Act adds provisions to the Alabama Jobs Act to make it easier for projects located in rural areas to qualify for incentives. The number of jobs required to be created is reduced from 50 to 25. The jobs credit is hiked to four percent, and an additional 0.50 percent is made available for qualifying jobs filled by veterans. The investment credit would be available for an additional five years.

The bill also creates the Accelerate Rural Alabama Fund and allows the State Industrial Development Authority to make loans to rural entities for funding site preparation and other expenses associated with projects that are creating jobs in a rural area.

HB 59 – The Alabama Reinvestment and Abatements Act would provide tax incentives and worker training through workforce development organization AIDT in order to encourage capital reinvestment by existing businesses in Alabama into their current operations. The bill also allows for abatements of state ad valorem taxes and local non-educational property taxes for up to 20 years, which is double the current 10-year period allowed under current state law.

Governor Robert Bentley issued a statement praising House passage of these three bills, adding that the Alabama Legislature has always played a critical role in helping to make sure the state is a leader in economic development.

“This legislation will ensure Alabama remains a leader in recruiting new industry and helping our existing businesses continue to be successful,” said Gov. Bentley

Full Article: http://www.economicdevelopmenthq.com/blog/alabama-house-economic-development-bills-made-in-alabama-jobs-incentive-package/?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+economicdevelopmenthq+%28Economic+Development+Blog%29