The bill, HB441, amends several sections of the Code of Alabama 1975 to enhance eligibility criteria for companies seeking benefits under the Growing Alabama Act, Innovating Alabama Act, and Alabama Jobs Act. Key insertions include the definition of "underrepresented company," which must now be headquartered in communities eligible for investment through the federal New Markets Tax Credit program, as identified as of January 1, 2015, or thereafter. The bill also introduces job creation incentives and tax credits for projects that promote economic diversity. Additionally, it allows local economic development organizations to apply for funding to address site inadequacies in low-income communities, requiring economic impact reports and conflict of interest policies as part of the application process.

Moreover, the bill establishes criteria for nonprofit corporations to qualify as economic development entities and outlines eligible investments for the Alabama Innovation Fund. It emphasizes the importance of STEM initiatives and grants the board extensive powers to implement policies that support commercialization, entrepreneurship, and rural initiatives. The bill also promotes taxpayer donations for tax credits aimed at fostering innovation and mandates the creation of an advisory committee to ensure diverse representation. The eligibility criteria for Innovate Alabama tax credits are specified, including size and ownership demographics, and the corporation will operate as a public entity separate from the state. The act is set to take effect on June 1, 2024.

Statutes affected:
Introduced: 40-18-376, 40-18-417, 41-10-801, 41-10-804, 41-10-842
Enrolled: 40-18-376, 40-18-417, 41-10-801, 41-10-804, 41-10-842