The bill HB393 amends various sections of the Code of Alabama 1975 to modernize economic development initiatives by updating references and removing outdated language. It replaces mentions of the "Accelerate Alabama Strategic Economic Development Plan" with the current comprehensive economic development plan, "CatALyst," or any future amendments. The bill also updates the North American Industry Classification System (NAICS) codes to the latest 2022 revisions and makes technical revisions to ensure alignment with current standards. Key changes include an expanded definition of "industrial or research enterprise" to encompass a wider range of facilities and the establishment of new thresholds for what constitutes a "major addition" to existing industrial properties.

Additionally, HB393 modifies tax exemption periods for private use properties, particularly data processing centers, based on capital investment levels, allowing for exemption periods of 10, 20, or 30 years depending on the investment amount. The bill clarifies that ad valorem tax abatements will only apply to projects with statements of intent filed after December 31, 2011, and requires approval from local governing bodies. It also introduces new definitions for "Alabama Research Entity" and "Approved Activity," emphasizing partnerships with private sector applicants and focusing on research and development. Overall, these amendments aim to enhance economic growth in Alabama by refining tax incentive criteria and expanding the scope of eligible projects.

Statutes affected:
Introduced: 11-66A-2, 40-9B-3, 40-9G-1, 40-18-372, 41-23-252
Engrossed: 11-66A-2, 40-9B-3, 40-9G-1, 40-18-372, 41-23-252
Enrolled: 11-66A-2, 40-9B-3, 40-9G-1, 40-18-372, 41-23-252