AlabamaProposed amendment would cap data center tax breaks at 20 years
The proposed amendment would cap data center tax exemptions at 20 years beginning January 1, 2027, and require certain large centers to pay building-related taxes.
What it does
The proposed amendment would limit data center tax exemptions to a maximum of 20 years beginning January 1, 2027.
Certain large data centers would pay state taxes on buildings and power systems. Equipment needed to run the centers would remain eligible for tax exemptions during the allowed period.
Argument forRequiring certain large data centers to pay taxes on building and power purchases could preserve state revenue from those purchases.
Argument againstTaxes on building and power-system purchases could make construction and upgrades more expensive for the large data centers covered.
More detail
The proposed amendment would cap data center tax exemptions at 20 years. The cap concerns tax exemptions for data processing centers. The proposed 20-year limit would apply beginning January 1, 2027.
Certain large data centers would pay state property taxes that do not fund education, plus sales and use taxes on covered purchases. Covered purchases include building materials, property improvements, and power systems, including backup generators and batteries. The amendment does not state the size cutoff for covered centers. Computers, servers, licensed software, and equipment needed to run and maintain the center would remain eligible for construction-related tax exemptions throughout the applicable maximum exemption period. The equipment exception includes computing, data storage, and cooling systems.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 9Economic Development and Tourism Engrossed Substitute Offered (Economic Development and Tourism)Latest
- Apr 9Carried Over to the Call of the Chair
- Mar 19Read for the Second Time and placed on the Calendar (Economic Development and Tourism)Minor
- Mar 18Reported Out of Committee Second House (Economic Development and Tourism)
- Mar 12Third Reading in House of Origin
- Vote recorded Livingston motion to Adopt - Lost Roll Call 850. Result: fail.Upper
- Vote recorded Jones motion to Adopt - Adopted Roll Call 848. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 851. Result: pass.Upper
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Vote recorded Givhan motion to Adopt - Adopted Roll Call 849. Result: pass.Upper
- Mar 12Fiscal Responsibility and Economic Development 1st Amendment Offered (Fiscal Responsibility and Economic Development)Minor
- Mar 12Jones motion to Table - Adopted Voice VoteMajor
- Mar 12Jones 1st Substitute OfferedMinor
- Mar 12Jones motion to Adopt - Adopted Roll Call 848Major
- Mar 12Givhan 1st Amendment OfferedMinor
- Mar 12Givhan motion to Adopt - Adopted Roll Call 849Major
- Mar 12Livingston 1st Amendment OfferedMinor
- Mar 12Livingston motion to Adopt - Lost Roll Call 850Minor
- Mar 12Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 851Passed Senate
- Mar 12Engrossed
- Mar 12Read for the first time and referred to the House Committee on Economic Development and TourismMinor
- Mar 12Pending Committee Action in Second House (Economic Development and Tourism)
- Feb 12Read for the Second Time and placed on the Calendar (Fiscal Responsibility and Economic Development)Minor
- Feb 11Fiscal Responsibility and Economic Development 1st Amendment (Fiscal Responsibility and Economic Development)
- Feb 11Reported Out of Committee House of Origin
- Feb 5Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic DevelopmentMinor
- Feb 5Pending Committee Action in House of Origin (Fiscal Responsibility and Economic Development)Introduced
Taxes & Budget