The bill amends the Sweet Home Alabama Tourism Investment Act by introducing new definitions and requirements for certified tourism destination projects. Key insertions include the definition of "completion date," which mandates that projects must be completed within three years of the financial incentive agreement unless an extension is granted. It also clarifies that qualifying resort developments must include a hotel with at least 200 guest rooms and/or 200 vacation rental units, along with various guest amenities. Additionally, the Alabama Tourism Advisory Board is tasked with certifying project costs, and a supplemental tax rebate is established for approved companies. The bill streamlines the application process for tax rebates, requiring submissions to the tourism department, which will set standards and deadlines for review.

Furthermore, the bill sets a framework for tax rebates effective from August 1, 2023, for projects initiated after June 15, 2023, continuing until July 31, 2028, unless extended by the Legislature. It allows for a combination of state and local taxes to be rebated, with a total annual cap of $10 million, including a 10% allocation for targeted counties. Notably, the bill removes certain language regarding the approval process and eligibility criteria, simplifying the requirements for companies seeking tax incentives. It also introduces an aggregate cap of $10 million on annual tax rebates, with a potential one-time designation of an additional $2.5 million for projects with a minimum capital investment of $75 million. The bill mandates independent certification of project costs and specifies that only bona fide, third-party expenditures will count towards minimum investment requirements, excluding related-party transactions.

Statutes affected:
Introduced: 40-18-470, 40-18-471, 40-18-472, 40-18-473
Enrolled: 40-18-470, 40-18-471, 40-18-472, 40-18-473