AlabamaAlabama law allows qualifying manufacturing zones in districts of any size
Alabama counties and cities may repay certain earlier land costs for a manufacturing zone with district tax revenue, if they stated that intent before spending.
What it does
Counties and cities may use district tax revenue to repay earlier costs of buying land for a large manufacturing zone, if they stated that intent before spending the money.
A county or city may place a qualifying manufacturing zone inside a tax increment district of any size. The zone must meet land, industry, and investment requirements.
Argument forRepaying eligible land costs from district tax revenue could help counties and cities prepare sites for large manufacturing projects.
Argument againstUsing district tax revenue to repay land costs could leave less money available for other public needs or taxing authorities.
More detail
A public entity may count certain earlier land costs as project costs and repay them from tax increments collected in the district. The costs must be incurred by a public entity to acquire land or an interest in land forming all or part of a Major 21st Century Manufacturing Zone. Before incurring the costs, the local governing body must state its intent to seek repayment from ad valorem taxes collected in a future district. The land purchase must occur before the district is created. Repayment may come from district tax revenue collected afterward.
A local governing body may place a qualifying Major 21st Century Manufacturing Zone within a tax increment district, regardless of the district’s size. The zone must be within the boundaries or corporate limits of the local governing body that designates it. The zone must cover at least 250 contiguous acres, suit specified manufacturing industries, and have at least $100 million in anticipated capital spending. The act took effect immediately.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17EnactedBecame Law
- Apr 7Third Reading in Second House
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1176. Result: pass.Upper
- Vote recorded Third Reading in Second House. Result: pass.Upper
- Apr 7Motion to Read a Third Time and Pass - Adopted Roll Call 1176Passed Senate
- Apr 7Ready to Enroll
- Apr 7EnrolledTo Governor
- Apr 7Delivered to GovernorMinor
- Apr 7Signature Requested
- Apr 1Reported Out of Committee Second House
- Apr 1Read for the Second Time and placed on the Calendar (Tourism)Minor
- Mar 31Third Reading in House of Origin
- Vote recorded Motion to Adopt - Adopted Roll Call 1078. Result: pass.Lower
- Vote recorded Motion to Adopt - Adopted Roll Call 1079. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1080. Result: pass.Lower
- Vote recorded Third Reading in House of Origin. Result: pass.Lower
- Mar 31Economic Development and Tourism Engrossed Substitute Offered (Economic Development and Tourism)Minor
- Mar 31Motion to Adopt - Adopted Roll Call 1078Major
- Mar 31Pringle 1st Amendment OfferedMinor
- Mar 31Motion to Adopt - Adopted Roll Call 1079Major
- Mar 31Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1080Passed House
- Mar 31Engrossed
- Mar 31Read for the first time and referred to the Senate Committee on TourismMinor
- Mar 31Pending Committee Action in Second House (Tourism)
- Mar 19Read for the Second Time and placed on the Calendar (Economic Development and Tourism)Minor
- Mar 18Reported Out of Committee House of Origin (Economic Development and Tourism)
- Mar 17Read for the first time and referred to the House Committee on Economic Development and TourismMinor
- Mar 17Pending Committee Action in House of Origin (Economic Development and Tourism)Introduced
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