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HB548 INTRODUCED
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HB548
5V17V66-1
By Representatives Lawrence, Daniels, Clarke, Jones, Forte,
Hall, Warren, Datcher, Bracy, Hollis, Tillman, Moore (M),
McClammy, Hendrix, Morris, England, Sellers, Gray, Travis,
McCampbell, Hassell, Givan, Drummond, Jackson, Lands, Ensler,
Rafferty, Chestnut, Boyd
RFD: State Government
First Read: 03-Mar-26
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5V17V66-1 01/27/2026 JRF (F)JRF 2025-3526
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First Read: 03-Mar-26
SYNOPSIS:
This bill would establish the Automotive Supply
Chain Resilience and Expansion Act that creates a
strategic framework to support the automotive industry
in response to federal tariff disruptions, by offering
targeted relief, supply chain incentives, and export
assistance to protect jobs and maintain the sector's
global competitiveness.
A BILL
TO BE ENTITLED
AN ACT
Relating to commerce; to establish the Automotive
Supply Chain Resilience and Expansion Act; to provide
definitions; to create the Automotive Tariff Relief Fund; to
create the Automotive Tariff Relief Grant Program; to create
the Supply Chain Relocation and Expansion Income Tax Credit;
to create the Export Market Diversification Program; to adapt
state procurement opportunities; and to create the Automotive
Resilience Task Force.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Automotive Supply Chain Resilience and Expansion Act.
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the Automotive Supply Chain Resilience and Expansion Act.
Section 2. It is the intent of the Legislature to
provide strategic support to the automotive manufacturing
sector in response to disruptions caused by federal tariffs
and global trade instability.
Section 3. For the purpose of this act, the following
terms and phrases have the following meanings:
(1) DEPARTMENT. The Alabama Department of Commerce.
(2) ELIGIBLE ENTITY. Any Alabama manufacturer or
supplier operating in the state.
(3) TARIFF-RELATED DISRUPTION. Increased costs, reduced
revenues, or supply interruptions resulting directly or
indirectly from federal tariffs or foreign retaliatory
measures.
Section 4. (a) T he Automotive Tariff Relief Grant
Program and the Automotive Tariff Relief Grant Fund are
established and shall be administered by the department.
(b) Grant funds may be used for:
(1) Cost mitigation;
(2) Inventory diversification;
(3) Workforce retention; or
(4) Capital improvement.
(c) Grants shall be awarded to eligible entities that
demonstrate hardship due to tariff-related disruptions.
(d) The aggregate amount of grants awarded pursuant to
this section shall not exceed ten million dollars
($10,000,000) in a calendar year.
(e) The department shall establish rules for
application procedures and documentation requirements.
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application procedures and documentation requirements.
Section 5. (a) A refundable income tax credit , known as
the Supply Chain Relocation and Expansion Tax Credit, may be
claimed by eligible entities that relocate critical supply
operations, expand domestic sourcing within the state, or
invest in technology or equipment that mitigates reliance on
tariff-affected imports.
(b) The amount of any income tax credit shall not
exceed 30 percent of qualifying investment expenditures.
(c) The income tax credit authorized by this act is
limited to an aggregate amount for all taxpayers of ten
million dollars ($10,000,000) annually.
(d) The income tax credit is nontransferable and may be
carried forward for up to five years.
(e)(1) The income tax credit allowed under this section
shall be effective beginning January 1, 2027, for the 2027 tax
year, and shall continue through the 2029 tax year, except for
carry-forward as provided in subsection (d).
(2) Notwithstanding the other provisions of this
subsection, a business shall not claim this income tax credit
for more than three tax years.
(f) The Alabama Department of Revenue may adopt rules
for the implementation and administration of this section.
Section 6. (a) The Supply Chain Relocation and
Expansion Loan Program is established and shall be
administered by the department.
(b) Low-interest loans shall be provided to eligible
entities.
(c) The amount of any low-interest loan shall not
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(c) The amount of any low-interest loan shall not
exceed 30 percent of qualifying investment expenditures.
(d) The department shall establish rules for
application procedures and documentation requirements.
Section 7. (a) The Export Market Diversification
Program which will expand export support services to eligible
entities seeking new international markets is established and
shall be administered by the department.
(b) Services may include export financing assistance,
trade mission subsidies, foreign regulatory compliance, and
market entry consulting.
(c) Priority shall be given to businesses impacted by
foreign retaliatory tariffs.
Section 8. (a) State procurement agencies may adjust
bid scoring to reflect cost increases from tariffs, grant
temporary preference to domestic suppliers impacted by trade
measures, and modify contract requirements to allow use of
alternative materials.
(b) The Alabama Department of Finance shall issue
implementing guidelines by October 1, 2026.
Section 9. (a) There is established the Automotive
Resilience Task Force.
(b) The task force shall:
(1) Monitor federal trade actions and foreign
retaliatory measures;
(2) Assess economic impact on the automotive sector;
and
(3) Recommend policy responses and industry
adaptations.
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adaptations.
(c) The task force shall consist of five members, each
appointed by the Governor.
(d) The first meeting to be held by September 1, 2026,
and shall meet no less than annually and otherwise as
necessary.
(e) The task force shall report bi annually to the
Governor and the Legislature on its activities, findings, and
recommendations.
Section 10. Sections 1 through 4 and Sections 6 through
8 of this act shall become effective on July 1, 2027. Section
5 of this act shall become effectiv e on July 1, 2027,
contingent on the ratification of an amendment to the
Constitution of Alabama of 2022, proposed in the 2026 Regular
Session, authorizing the Alabama Department of Commerce to
provide low-interest loans to eligible entities.
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