The proposed bill establishes a tax credit for restaurants that participate in approved oyster shell recycling programs in Alabama. It recognizes the environmental benefits of recycling oyster shells, which contribute to local water quality and coastal protection. The tax credit allows restaurants or eligible individuals who donate oyster shell material to claim a credit against their state income tax liability, with the credit amount being the lesser of one dollar for every 50 pounds of donated shells or a maximum of two thousand dollars. The total credits granted are capped at one hundred thousand dollars per calendar year, and the credits are available on a first-come, first-served basis.

Additionally, the bill outlines the requirements for claiming the tax credit, including the necessity of a standardized certificate to verify the amount of oyster shells recycled. It specifies that the credit can be claimed by various entities, including corporations and individuals, and establishes that the credit can be claimed starting from the 2027 tax year until the 2031 tax year. The Alabama Department of Revenue is tasked with implementing the provisions and collaborating with the Department of Conservation and Natural Resources to designate approved recycling programs. The act is set to take effect on June 1, 2026.