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HB596 INTRODUCED
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HB596
PSH78EE-1
By Representatives Lands, McClammy, Daniels, Jones, Drummond,
Moore (M), Travis, Sellers, McCampbell, Jackson, Warren,
Datcher, Morris, Bracy, Hendrix, Rafferty, Tillman, Lawrence,
Chestnut, Hassell, Hall, Ensler, Hollis, Gray
RFD: Ways and Means General Fund
First Read: 10-Mar-26
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PSH78EE-1 02/17/2026 PMG (L)cr 2025-3535
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First Read: 10-Mar-26
SYNOPSIS:
This bill would create the Main Street Revival
Act to revitalize small municipal downtowns and
commercial districts by providing redevelopment grant
programs to support business startups, stimulate local
entrepreneurship, reuse vacant or underutilized
properties, preserve historic buildings, support mixed
retail use and mentorship programs, and support local
governments by providing technical and financial
support to update planning, zoning, and land use
regulation.
This bill would require the Alabama Department
of Economic and Community Affairs to administer the
program.
This bill would also create a rehabilitation tax
credit for renovations of certain
properties.
A BILL
TO BE ENTITLED
AN ACT
Relating to Urban revitalization; to provide
redevelopment grants and business startup support to certain
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redevelopment grants and business startup support to certain
vacant or underutilized commercial structures in small towns;
to provide grants and technical assistance to governing bodies
of small towns to assist with updating planning, zoning, and
land use regulation; to require the Alabama Department of
Economic and Community Affairs to administer the programs; and
to create a rehabilitation tax credit for renovations of
certain properties.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Main Street Revival Act.
Section 2. For purposes of this act, the following
terms have the following meanings:
(1) DEPARTMENT. The Department of Economic and
Community Affairs.
(2) ELIGIBLE AREA. A commercial corridor or downtown
district in a municipality with a population under 25,000.
(3) ELIGIBLE PROPERTY. A vacant or underutilized
commercial structure, or structure that can be used for a
commercial purpose, located within an eligible area.
Section 3. (a) Subject to the Legislature appropriating
funds for this purpose, the department shall establish and
administer the Main Street Microenterprise Grant Program to
provide small grants to local entrepreneurs launching or
expanding businesses in eligible areas.
(b) The department shall establish criteria for
eligibility in a manner that promotes revitalization and
encourages entrepeneurship.
(c) The grants shall range from five thousand dollars
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(c) The grants shall range from five thousand dollars
($5,000) to twenty-five thousand dollars ($25,000) and may be
used for leasehold improvements, equipment, signage, or
startup inventory.
(d) Applicants must demonstrate a business plan and
sufficient funding to match the amount of any grant awarded
pursuant to this section.
(e) The department may adopt rules as necessary to
implement this section.
Section 4. (a) Subject to the Legislature appropriating
funds for this purpose, the department shall establish and
administer the Historic Storefront Preservation Incentive
Grant Program to support the preservation and modernization of
historic commercial buildings through state grants and
technical assistance.
(b) The department shall establish criteria for
eligibility of historic properties in eligible areas, provided
properties must have been constructed at least 50 years before
the date of grant application.
(c) Grants may be used for facade improvements,
structural stabilization, and upgrades to comply with the
Americans with Disabilities Act.
(d) The department shall give priority to projects
contributing to local heritage tourism or cultural
revitalization.
(e) The department may adopt rules as necessary to
implement this section.
Section 5. (a) Subject to the Legislature appropriating
funds for this purpose, the department shall establish and
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funds for this purpose, the department shall establish and
administer the Business Incubator and Pop-Up Support Grant
Program to support temporary retail activations, shared
commercial space, and business coaching for early-stage
ventures in eligible areas.
(b) Grants under this program shall be available to
nonprofit businesses and organizations, chambers of commerce,
and municipal development agencies.
(c) Grants may be used for shared retail spaces or
maker hubs, pop-up shops or kiosks in vacant storefronts, or
technical assistance and mentorship programs.
(d) The department may adopt rules as necessary to
implement this section.
Section 6. (a) Subject to the Legislature appropriating
funds for this purpose, the department shall establish and
administer the Local Planning and Zoning Modernization
Assistance Program to offer technical assistance and matching
grants for local governments to support mixed-use
redevelopment and small business growth.
(b) The department shall provide matching grants and
planning support to municipalities to update zoning and land
use regulation in a manner that creates mixed-use overlays;
reduces parking minimums; and streamlines permitting for
adaptive reuse.
Section 7. (a) An income tax credit is established for
eligible taxpayers who incur costs for the renovation of an
eligible property. The tax credit shall equal 25 percent of
the total cost of the renovation of the eligible property. The
total costs for purposes of the tax credit calculation under
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total costs for purposes of the tax credit calculation under
this subsection shall exclude any costs reimbursed or expected
to be reimbursed by any other entity including, but not
limited to, insurance reimbursements, grants, or other
government subsidies or incentives.
(b) The tax credit issued under this section may not
decrease a taxpayer's tax liability to less than zero. If the
tax liability of the taxpayer is less than the tax credit
issued under this section, the taxpayer may only use the
amount of the credit that reduces the taxpayer liability to
zero. The tax credit is not refundable nor transferable but
may be carried forward for a total of five years.
(c) The Department of Revenue may audit and reassess
any credit improperly obtained by the taxpayer, in accordance
with the Alabama Taxpayers' Bill of Rights and Uniform Revenue
Procedures Act under Chapter 2A, Title 41, Code of Alabama
1975.
(d) The Department of Revenue may adopt rules,
including rules requiring proof of renovation of an eligible
property, to administer this section.
Section 8. This act shall become effective on January
1, 2027.
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