The bill establishes the Alabama Development Fund, which will be administered by the Department of Commerce, and modifies the state's taxation framework by unabating certain portions of the noneducational ad valorem tax and state construction-related transaction tax. Specifically, 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 will remain unabated. The funds collected from these unabated taxes will be deposited into the newly created Alabama Development Fund. The provisions of this act will apply to new abatements granted on or after June 1, 2026, while ensuring that existing abatement agreements remain unaffected.

Additionally, the bill requires the Department of Revenue to share abatement information with the Department of Commerce for economic development purposes, while maintaining taxpayer confidentiality. The Alabama Development Fund will receive funds from various sources, including taxes collected under this act, and will not allow withdrawals or expenditures without legislative appropriation. Unexpended amounts in the fund will carry over to the next fiscal year, and the Department of Commerce will oversee the fund's expenditures to promote economic development. 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 fund administration.

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