The bill establishes new provisions regarding the abatement of certain state taxes in Alabama, specifically targeting noneducational ad valorem taxes and state construction-related transaction taxes. It mandates that 1.0 mill of the state's abated noneducational ad valorem taxes and three-quarters of one percent of the state construction-related transaction taxes on private use industrial property remain unabated. The collected funds from these unabated taxes will be directed to a newly created Alabama Development Fund, which will be administered by the Department of Commerce. The bill also stipulates that these changes will apply only to new abatements granted on or after June 1, 2026, ensuring that existing abatement agreements remain unaffected.

Additionally, the bill facilitates the sharing of abatement information between the Department of Revenue and the Department of Commerce to enhance economic development planning and program evaluation. It includes provisions to maintain taxpayer confidentiality and outlines the funding sources for the Alabama Development Fund, which will include tax revenues generated by this act, legislative appropriations, and other contributions. The fund's unexpended amounts will carry over to the next fiscal year, and expenditures from the fund will require legislative appropriation. The effective dates for the various sections of the act are set for June 1, 2026, for the tax provisions and October 1, 2025, for the establishment of the fund.

Statutes affected:
Introduced: 40-9B-4, 40-9G-2
Enrolled: 40-9B-4, 40-9G-2