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. These funds will be collected by local tax officials and the Department of Revenue, respectively, and deposited into 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, and does not affect any existing abatement agreements.

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 ensure taxpayer confidentiality and outlines the sources of funding for the Alabama Development Fund, which will include tax revenues generated by this act, legislative appropriations, and other contributions. The fund's expenditures will require legislative appropriation, and any unspent funds will carry over to the next fiscal year. 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