2016 Code of Alabama
Title 40 - REVENUE AND TAXATION.
Chapter 9G - ALABAMA REINVESTMENT AND ABATESMENT ACT.
Section 40-9G-2 - Incentives for qualifying projects; filings; audits; promulgation of regulations.

Section 40-9G-2Incentives for qualifying projects; filings; audits; promulgation of regulations.

(a) For any qualifying project, an abatement may be allowed for ad valorem taxes and construction related transaction taxes.

(1) The abatement of construction related transaction taxes shall be subject to and shall follow the procedures, provisions, limitations, and definitions of Chapter 9B, except that capitalized repairs, rebuilds, maintenance and replacement equipment shall qualify for abatements.

(2) The abatement of ad valorem taxes shall be subject to and shall follow the procedures, provisions, limitations, and definitions of Chapter 9B, except as follows:

a. The amount of the ad valorem tax abatement shall be equal to the ad valorem taxes owed, minus the ad valorem taxes owed from the tax year immediately before the qualifying project was placed in service;

b. As to any ad valorem tax abatement, capitalized repairs, rebuilds, maintenance and replacement equipment shall qualify for abatements; and

c. Regardless of the length of the abatement, county noneducational taxes may be abated only with the consent by resolution of the governing body of the county, municipal noneducational taxes may be abated only with the consent by resolution of the governing body of the municipality, and state ad valorem taxes may be abated only with the consent of the Governor. The governing body of a county and a municipality may separately authorize one or more public industrial authorities to provide by resolution for such consent on its behalf.

(b) For any qualifying project, a refund of utility taxes may be allowed for up to a ten-year period. The refund shall be calculated and paid annually, as follows:

(1) The amount of the refund shall be equal to the utility taxes paid, minus the utility taxes paid on average during the three tax years immediately before the qualifying project was placed in service.

(2) For each year of the incentive period for the utility tax refund, the incentivized company shall submit to the Department of Commerce a certification as to the utility taxes paid during the prior year. Following such examination as it deems necessary, the Department of Commerce may certify the information and deliver same to the Department of Revenue. Thereafter, the Department of Revenue shall calculate the correct refund and issue it directly to the company.

The Department of Finance shall promulgate regulations to ensure that the refund in no case would reduce the distribution for the Alabama Special Mental Health Trust Fund.

An incentivized company may assign and convey a utility tax refund to another entity if substantially all of the assets of the incentivized company are assigned and conveyed in the same transaction. Proof of such transfer shall be submitted to the Departments of Commerce and Revenue.

(c) For any qualifying project, AIDT training for new or current employees to operate new and replacement equipment may be provided.

(d) In order to receive the incentives described in subsections (b) or (c), the following shall occur:

(1) For any company that proposes a qualifying project, the Secretary of Commerce shall make the following findings:

a. That the project is in fact a qualifying project;

b. That the company or any related company has not defaulted on a project agreement or similar agreement, or any economic incentive agreement at any time during the last 10 years; and

c. That the qualifying project will promote the continued and sustained operation of the company’s business operations in Alabama.

(2) Upon making affirmative findings on the criteria set forth in subdivision (1), the Secretary of Commerce shall recommend to the Governor that the company and qualifying project be approved for one or more of the incentives described in subsections (b) and (c). The name of the company and information collected about it and the qualifying project by the Secretary shall be forwarded to the Governor.

(3) After reviewing the information provided by the Secretary of Commerce, the Governor shall also determine whether the company and the qualifying project meet the criteria set forth in subdivision (1). If the Governor makes such a finding, the company and qualifying project may claim the incentives provided in subsections (b) and (c).

(e) All filings made by a private party with any department of the state government shall be made using forms promulgated by such department. Any such filing shall be treated as a tax return, subject to penalties imposed by the Department of Revenue.

(f) Nothing in this chapter shall be construed to limit the powers otherwise existing for the Department of Revenue to audit and assess a company. Nothing in this chapter shall be construed to limit the applicability of Chapter 9B to a private user, as such term is used in Chapter 9B.

(g) Nothing in this chapter shall be construed to make available to any company any right to the benefits conferred by this chapter absent strict compliance with this chapter. No cause of action shall exist for the denial of any benefit under this chapter.

(h) The Departments of Commerce and Revenue shall promulgate regulations to implement and administer the provisions of this chapter.

(Act 2015-24, §2.)