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HB551 INTRODUCED
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HB551
JPEPZFF-1
By Representatives Jackson, Daniels, Clarke, Lands, Jones,
Forte, Hall, Warren, Datcher, Bracy, Hollis, Tillman, Moore
(M), McClammy, Hendrix, Morris, England, Sellers, Gray,
Travis, McCampbell, Hassell, Givan, Drummond, Lawrence,
Ensler, Rafferty, Chestnut, Boyd
RFD: State Government
First Read: 03-Mar-26
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JPEPZFF-1 01/27/2026 JRF (F)JRF 2025-3522
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First Read: 03-Mar-26
SYNOPSIS:
This bill would establish the Steel and Advanced
Manufacturing Competitiveness Act that will support
steel and heavy manufacturing sectors by providing
financial assistance, procurement preferences, and
innovation incentives to counteract global trade
disruptions and maintain industrial competitiveness.
A BILL
TO BE ENTITLED
AN ACT
Relating to commerce; to establish the Steel and
Manufacturing Competitiveness Act; to provide definitions; to
create the Steel Industry Relief and Investment Grant Program;
to create the Manufacturing Innovation and Modernization
Income Tax Credit; to adapt state procurement preferences; to
create the Advanced Manufacturing Export Expansion Initiative;
and to create the Industrial Trade Vulnerability Monitoring
Board.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Steel and Advanced Manufacturing Competitiveness Act.
Section 2. It is the intent of the Legislature to
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Section 2. It is the intent of the Legislature to
sustain and strengthen the steel and manufacturing industries
by responding to international trade volatility through
investment, modernization, and strategic procurement policies.
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 MANUFACTURER. A steel producer or
industrial manufacturer operating within the State of Alabama.
(3) TRADE DISRUPTION. Cost increases, lost markets, or
input shortages caused by tariffs, quotas, or other trade
restrictions.
Section 4. (a) The Steel Industry Relief and Investment
Grant Program is established and shall be administered by the
department.
(b) The department shall award grants to eligible
manufacturers that demonstrate hardship from trade
disruptions.
(c) Grant funds may be used for:
(1) Working capital for tariff-impacted operations;
(2) Retention of skilled labor; or
(3) Capital Improvements to enhance efficiency or
resilience.
(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, by rule, shall develop application
and oversight procedures for the program.
Section 5. (a) A refundable income tax credit, known as
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Section 5. (a) A refundable income tax credit, known as
the Manufacturing Innovation and Modernization Tax Credit, may
be claimed by eligible manufacturers investing in advanced
machinery, industrial automation, or domestic sourcing
capability as provided by this section.
(b) A taxpayer may claim a credit in an amount equal to
20 percent of the amount of qualifying investments made during
the tax year.
(c)(1) A taxpayer may not claim more than one million
dollars ($1,000,000) in credits pursuant to this section in
any single tax year.
(2) 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
section, 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 implementat ion and administration of this section.
Section 6. (a) All infrastructure and construction
contracts made pursuant to Article 5 of Chapter 4 of Title 41
and Chapter 16 of Title 41, Code of Alabama 1975, shall
include a preference for domestically produced steel and
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include a preference for domestically produced steel and
manufactured components.
(b) The Alabama Department of Finance shall establish
criteria and certification processes to implement this
section.
(c) An entity may forgo this requirement if domestic
materials are unavailable or unreasonably priced.
Section 7. (a) The department shall create a program
called the Advanced Manufacturing Export Expansion Initiative
to assist manufacturers in expanding international market
reach.
(b) Services may include:
(1) Export compliance and logistics support;
(2) International marketing assistance; or
(3) Trade mission coordination.
(c) Priority shall be given to firms affected by
retaliatory tariffs or loss of market share.
Section 8. (a) There is established the Industrial
Trade Vulnerability Monitoring Board.
(b) The board shall consist of five members, each
appointed by the Governor.
(c) The first meeting shall be held by September 1,
2026, at which it shall elect a chair. The board shall meet no
less than annually and at the call of the chair.
(d) The board shall:
(1) Monitor international trade developments affecting
manufacturers;
(2) Identify sector-specific risks; and
(3) Recommend policies to improve long-term
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(3) Recommend policies to improve long-term
competitiveness.
(4) Report annually to the Governor and the Legislature
on its activities, findings, and recommendations.
Section 9. This act shall become effective on July 1,
2027.
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