The bill HB399 Engrossed amends the Code of Alabama 1975 to revise tax abatement provisions for data processing centers and qualifying industrial or research enterprises. It establishes a maximum exemption period of 20 years for tax abatements, effective January 1, 2027, while also mandating the collection of state noneducational ad valorem taxes and sales and use taxes on specific purchases made by large data processing centers. The bill introduces new definitions, such as "major addition," and clarifies existing terms to enhance the legal framework supporting economic development. It also extends the sunset date for current abatements and streamlines the language by deleting outdated provisions.

Additionally, the bill specifies that for data processing centers with a total peak demand of 100 megawatts or greater, tax abatements will not extend beyond the date the property is placed in service. It allows for the abatement of state construction-related transaction taxes on necessary equipment for these centers and grants the Governor authority to abate taxes in targeted counties. The bill modifies the allocation of tax proceeds, ensuring funds are directed to health services and the Department of Human Resources, while also changing the distribution of funds to counties based on population and equal shares. Overall, the bill aims to incentivize investment in data processing and energy-related projects while streamlining the tax abatement process.

Statutes affected:
Introduced: 40-9B-3, 40-9B-4, 40-9B-4, 40-23-35
Engrossed: 40-9B-3, 40-9B-4, 40-9B-4, 40-23-35