HB594 Creates the Rural Industry Reshoring and Reinvestment Act…

Plain English Breakdown

The bill text states the effective date is January 1, 2027, but metadata shows conflicting status labels ('Passed Legislature' vs. 'Pending Committee Action').

Rural Industry Reshoring and Reinvestment Act

This bill creates tax credits, grants for site development, and performance bonuses to encourage manufacturing companies to move or expand in rural Alabama areas.

What This Bill Does

Creates the Rural Industry Reshoring and Reinvestment Act to guide economic growth efforts.
Establishes a refundable income tax credit of five percent on qualifying payroll for eligible businesses creating at least 15 full-time jobs with wages meeting or exceeding the county median.
Adds an extra ten percent tax credit bonus if a business replaces a supply chain that was previously imported from outside the United States.
Sets aside funds for grants to improve infrastructure like roads, utilities, and broadband at rural industrial sites.
Provides performance grants of $3,000 per full-time job created in designated zones.

Who It Names or Affects

Manufacturing or logistics companies that locate or expand in designated Rural Industry Opportunity Zones.
Local governments and economic development nonprofits that receive site improvement grants.
The Alabama Department of Commerce, which administers the programs and designates eligible zones.

Terms To Know

Rural Opportunity Zone: A county or area with a population below a set limit and economic indicators lower than state or national averages.
Reshoring: Moving industries or supply chains back to the United States from other countries.
Refundable Tax Credit: A tax benefit that reduces a business's taxes owed and can be paid as cash if it exceeds what is owed.

Limits and Unknowns

The total amount of income tax credits available in any calendar year cannot exceed $10 million.
The total amount of job creation performance grants awarded in a calendar year cannot exceed $10 million.
Specific population and economic thresholds for Rural Opportunity Zones are not listed in the text but will be set by the Alabama Department of Commerce.

Official Summary Text

Creates the Rural Industry Reshoring and Reinvestment Act; creates the Rural Reshoring Tax Credit Program; creates Rural Industrial Site Development Grant Program

Current Bill Text

Read the full stored bill text

HB594 INTRODUCED
Page 0
HB594
JPEP5FN-1
By Representatives Lawrence, Daniels, Chestnut, Clarke, Lands,
McCampbell, Rafferty, England, Drummond, Warren, Travis,
Jackson, Tillman, Hendrix, Jones, Bracy, Moore (M), Datcher,
Morris, Givan, Sellers, Hall, Hassell, Ensler, McClammy,
Hollis, Gray
RFD: Ways and Means General Fund
First Read: 10-Mar-26
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JPEP5FN-1 01/27/2026 JRF (F)JRF 2025-3529
Page 1
First Read: 10-Mar-26
SYNOPSIS:
This bill would establish the Rural Industry
Reshoring and Reinvestment Act that will stimulate
economic growth in rural communities by offering
strategic incentives to attract manufacturing and
supply chain investments, with a focus on reshoring
industries previously located outside the United
States.
A BILL
TO BE ENTITLED
AN ACT
Relating to commerce; to establish the Rural Industry
Reshoring and Reinvestment Act; to provide definitions; to
create the Rural Reshoring Tax Credit Program; to create the
Rural Industrial Site Development Grant Program; to create the
Rural Industrial Site Development Grant Fund; and to designate
Rural Industry Opportunity Zones.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Rural Industry Reshoring and Reinvestment Act.
Section 2. It is the intent of the Legislature to
attract manufacturing and supply chain investment to rural
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HB594 INTRODUCED
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attract manufacturing and supply chain investment to rural
areas by offering targeted incentives and site development
support, with a focus on reshoring industries previously
located outside the United States.
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 BUSINESS. A manufacturing or logistics
company that locates and expands in a designated opportunity
zone.
(3) RURAL OPPORTUNITY ZONE. A county or jurisdiction
with a population below a threshold set by the Alabama
Department of Commerce and with economic indicators below the
state or national average.
Section 4. (a) A refundable income tax credit, known as
the Rural Reshoring Tax Credit is created.
(b) The income tax credit shall be made available to
eligible businesses that create at least 15 full-time jobs
with a median wage equal to or greater than the county median.
(c) The income tax credit is equal to five percent to
qualifying payroll for up to 10 years.
(d) The income tax credit is nontransferable and may be
carried forward for up to five years.
(e) The aggregate amount of income tax credits that may
be allocated by the department under this section during a
calendar year shall not exceed ten million dollars
($10,000,000).
(f)(1) The income tax credit allowed under this section
shall be effective beginning January 1, 2027, for the 2027 tax
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HB594 INTRODUCED
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shall be effective beginning January 1, 2027, for the 2027 tax
year, and shall continue through the 2036 tax year.
(2) Notwithstanding the other provisions of this
subsection, a business shall not claim this income tax credit
for more than 10 tax years.
(3) A Supply Chain Localization Bonus of an additional
10 percent income tax credit on qualifying investment may be
claimed by businesses if the project replaces a previously
imported supply chain.
(4) The Alabama Department of Revenue may adopt rules
for the implementation and administration of this section.
Section 5. (a) The Industrial Site Development Grant
Fund is established and shall be administered by the
department to support infrastructure improvements at rural
industrial sites.
(b) Grant funds may be used for:
(1) Site grading;
(2) Roads;
(3) Utilities;
(4) Broadband; and
(5) Environmental permitting.
(c) The department shall award grants to local
governments, regional development authorities, or economic
development nonprofits.
Section 6. (a) The department shall award Job Creation
Performance Grants of three thousand dollars ($3,000) per
full-time job created in a rural opportunity zone to eligible
businesses.
(b) The aggregate amount of grants awarded pursuant to
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HB594 INTRODUCED
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(b) The aggregate amount of grants awarded pursuant to
this section shall not exceed ten million dollars
($10,000,000) in a calendar year.
(c) The department, by rule, shall develop application
and oversight procedures.
Section 7. (a) The department shall designate Rural
Industry Opportunity Zones and shall maintain a list of
eligible rural areas based on population and economic
indicators.
(b) The department shall update Rural Industry
Opportunity Zones every three years.
Section 8. This act shall become effective on January
1, 2027.
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