The Alabama Broadband Investment Maximization Act aims to promote broadband infrastructure development by exempting certain purchases from state sales and use tax. Specifically, the bill provides an exemption for the gross receipts derived from the sale of equipment, machinery, software, and other infrastructure used to produce broadband communications services or provide Internet access, as long as these items have a useful life of at least ten years. This exemption applies only to purchases made for projects funded or administered by the Alabama Department of Economic and Community Affairs. Additionally, the bill clarifies that the exemption does not extend to personal consumer electronics such as smartphones, computers, and tablets.

The exemption is set to be effective from September 1, 2026, to August 31, 2029, and allows counties or municipalities to also exempt the gross proceeds from the sale of broadband equipment and supplies from local sales and use taxes. The Department of Revenue is authorized to adopt rules for the implementation and administration of this section. The act will officially take effect on June 1, 2026.

Statutes affected:
Introduced: 40-23-2, 40-23-61
Engrossed: 40-23-2, 40-23-61