Global Trade Alert

On May 30, 2019 the Alabama legislature enacted a bill (HB540) entitled the “Alabama Incentives Modernization Act.” The governor subsequently signed the bill into law. The bill expands upon the existing incentives in the Alabama Jobs Act, especially in rural areas. That 2015 statute provides for a jobs credit against utility taxes or an investment credit against income taxes, at a firm’s option. The new bill extends the benefits of being a “rural” county to any county with population less than 50,000. It also enhances the incentives for high-tech companies, and allows them for any high tech company creating at least five jobs. It also allows persons who move to Alabama to work in Alabama’s high-tech companies, as well as investors in such companies, not to pay tax upon the disposition of their ownership interests in the companies. The bill also expands the Opportunity Zone program in Alabama, creating an Alabama capital gains tax reduction for investments in opportunity zone funds predominately investing in Alabama.