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HB554 INTRODUCED
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HB554
U9R6SXG-1
By Representatives Hall, Daniels, Jones, Lands, Clarke, Forte,
Warren, Datcher, Bracy, Hollis, Tillman, Moore (M), McClammy,
Hendrix, Morris, England, Sellers, Gray, Travis, McCampbell,
Hassell, Givan, Drummond, Jackson, Lawrence, Ensler, Rafferty,
Chestnut, Boyd
RFD: State Government
First Read: 03-Mar-26
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U9R6SXG-1 12/10/2025 MRF (F)MRF 2025-3524
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First Read: 03-Mar-26
SYNOPSIS:
This bill would establish the State Energy
Supply and Chemical Trade Stabilization Act that
creates a strategic framework to reinforce energy and
chemical manufacturing by incentivizing domestic
production, supporting feedstock substitution, and
modernizing logistics infrastructure critical to energy
and industrial chemical supply chains.
A BILL
TO BE ENTITLED
AN ACT
Relating to commerce; to establish the State Energy
Supply and Chemical Trade Stabilization Act; to provide
definitions; to create the State Energy Supply and Chemical
Trade Stabilization Grant Program and the State Energy Supply
and Chemical Trade Stabilization Grant Fund; to create the
Reshoring and Domestic Production Income Tax Credit; to create
the Reshoring and Domestic Production Loan Program; to create
the Chemical and Energy Trade Risk Assessment Board; and to
provide for the Alabama Department of Economic and Community
Affairs to adopt rules to implement the provisions of this
act.
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act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the "State Energy Supply and Chemical Trade Stabilization
Act."
Section 2. It is the intent of the Legislature to
enhance the resilience of energy and chemical manufacturing
sectors by addressing the risks posed by global trade
disruptions and strengthening domestic production capacity.
Section 3. For the purposes of this Act, the following
terms have the following meanings:
(1) DEPARTMENT. The Alabama Department of Economic and
Community Affairs.
(2) ELIGIBLE FACILITIES. Any taxpayer who is a
chemical or energy production facility located within the
state.
(3) FEEDSTOCK. Any raw material to supply or fuel a
machine or industrial process.
(4) INPUT. Any material required to initiate, produce,
and deliver goods or services.
(5) TRADE DISRUPTION. Any condition, including tariffs
or sanctions, that increases input costs, limits access to
equipment, or reduces export capacity.
Section 4. (a) The State Energy Supply and Chemical
Trade Stabilization Grant Program and the State Energy Supply
and Chemical Trade Stabilization Grant Fund are established
and shall be administered by the department to support
eligible facilities impacted by trade disruptions.
(b) Grant funds may be used to:
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(b) Grant funds may be used to:
(1) Mitigate financial losses;
(2) Implement supply chain modifications;
(3) Retain key personnel;
(4) Identify critical feedstocks and inputs vulnerable
to trade restrictions;
(5) Support research into domestic or alternative
inputs;
(6) Pilot commercial applications of substitute
materials or energy sources; or
(7) Support capital improvements to energy and chemical
infrastructure, including, but not limited to, the following:
a. Pipeline upgrades.
b. Chemical storage expansion.
c. Intermodal transport hubs.
d. Port facilities.
(c) The department shall issue guidelines for
application procedures and required documents.
(d) The aggregate amount of grants awarded pursuant to
this section shall not exceed two million dollars ($2,000,000)
in a calendar year.
Section 5. (a) A refundable income tax credit, known as
the Reshoring and Domestic Production Income Tax Credit, may
be claimed by eligible facilities for capital investment
projects relating to chemical and energy production in the
state.
(b) A taxpayer may claim a credit in an amount equal to
30 percent of the amount of qualifying investments made during
the tax year.
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the tax year.
(c) The income tax credit authorized by this act is
limited to an aggregate amount for all taxpayers of two
million dollars ($2,000,000) 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
may be claimed beginning with the 2027 tax year and may not be
claimed for tax years after the 2031 tax year, except for
carry-forward as provided in subsection (d).
(2) A taxpayer 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 Reshoring and Domestic Production
Loan Program is established and shall be administered by the
department to provide low-interest loans to eligible
facilities for site development and equipment acquisition.
(b) The amount of any low-interest loan shall not
exceed 30 percent of qualifying investment expenditures.
(c) The department shall establish rules for
application procedures and documentation requirements.
Section 7. (a) There is established the Chemical and
Energy Trade Risk Assessment Board to evaluate vulnerabilities
in chemical and energy trade flows and recommend strategic
countermeasures.
(b) The board shall consist of five members, each
appointed by the director of the department.
(c)(1) The first meeting shall be held by September 1,
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(c)(1) The first meeting shall be held by September 1,
2026, at which time the board shall elect a chair.
(2) The board shall meet no less than annually and at
the call of the chair.
(d) The board shall:
(1) Review supply chain dependencies;
(2) Identify trade vulnerabilities; and
(3) Recommend strategies for securing critical trade
flows.
(e) The board shall issue a biennial report to the
Governor and the Legislature on its activities, findings, and
recommendations.
(f) Each member of the board shall be reimbursed at the
same per diem and travel allowance amounts paid by law to
state employees for each day of attendance of the business of
the board.
Section 8. This act shall become effective on July 1,
2026.
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