MONTGOMERY, Ala. — The Business Council of Alabama applauds the Alabama Legislature for giving final passage to HB 192 which will reauthorize the Alabama Jobs Act and the Growing Alabama Tax Credit. The bill passed through both chambers and is now on its way to the governor’s desk.
The bill was sponsored by Representative Bill Poole, R-Tuscaloosa, and carried in the Senate by newly elected Senate President Pro Tem Greg Reed. These key economic development incentives have a proven track record of job creation and industry recruitment. This reauthorization extends the Alabama Jobs Act and the Growing Alabama Credit until July 31, 2023, and also increases the annual cap for both incentives.
“BCA is thrilled to see these vital pieces of legislation renewed,” said Katie Boyd Britt, president and CEO of the Business Council of Alabama. “Both the Alabama Jobs Act and the Growing Alabama Tax Credits have proven to be key tools in furthering economic development in both urban and rural parts of our state, building the economy and creating job opportunities for all.”
The Alabama Jobs Act is a tax incentive program that provides incentives to stimulate job creation and capital investment through two separate tax credits – the Jobs Credit and the Investment Credit. Since 2015, the Alabama Jobs Act has provided $2.3 billion in total tax incentives, created 29,279 jobs, and provided an estimated return on investment of 176%.
“These economic development incentives that are being renewed and sharpened have proven to be essential tools in our toolbox when it comes to recruiting and expanding industry across Alabama,” said Representative Poole. “And because these incentives are performance-based in terms of requiring the creation of new jobs and attracting new investment, our citizens can be assured that these incentives are a sound investment in Alabama’s economy and the future prosperity of our citizens.”
The Growing Alabama Tax Credit is a tax credit provided to Alabama taxpayers who make contributions to Economic Development Organizations for approved qualifying projects. These local organizations can use the funds to contribute to projects such as inland ports or intermodal facilities, industrial parks, and agricultural centers, among others.
In December of 2020, Governor Ivey signed an executive order extending these incentives until the legislature could reconvene in 2021.
The House passed the bill by a vote of 94-1 on February 4. The bill was later passed by the Senate on February 10 by a vote of 28-0 before being sent to the Governor’s desk.