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Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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SB125 • 2026

Taxation; to establish an income tax credit for oyster shell recycling

Taxation; to establish an income tax credit for oyster shell recycling

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Sessions
Last action
2026-04-07
Official status
Indefinitely Postponed in House of Origin
Effective date
Not listed

Plain English Breakdown

The bill text states the act becomes effective on June 1, 2026, but metadata indicates it was 'Indefinitely Postponed' in April 2026. This suggests the law may not take effect despite passing the legislature.

Tax Credit for Restaurants That Recycle Oyster Shells

This bill creates a state income tax credit for restaurants that donate oyster shells to approved recycling programs.

What This Bill Does

  • Establishes an income tax credit of $1 for every 50 pounds of donated oyster shell material, up to a maximum of $2,000 per restaurant per year.
  • Sets a total cap on all credits granted at $100,000 per calendar year.
  • Requires that unused credit amounts from previous years get priority if funds are available in the next tax year.
  • Allows taxpayers to receive a refund if the tax credit is larger than their owed taxes.

Who It Names or Affects

  • Restaurants defined as facilities preparing and selling food for immediate consumption.
  • Corporations, individuals, or other entities that own qualifying restaurants.
  • The Alabama Department of Revenue, which manages the program and issues rules.
  • Approved oyster shell recycling programs designated by state officials.

Terms To Know

Oyster Shell Recycling Program
A specific activity or group approved by rule from the Alabama Department of Revenue to receive donated shells.
First-Come, First-Served
Credits are given in the order applications are received until the $100,000 yearly limit is reached.

Limits and Unknowns

  • The credit cannot be transferred or sold to another taxpayer.
  • Taxpayers must keep records proving they donated shells and how much weight was given.
  • This tax credit can only be claimed for tax years between 2026 and 2030.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

3PSXAEV-1

Agriculture, Conservation, and Forestry

Agriculture, Conservation, and Forestry 1st Amendment

Plain English: This amendment clarifies who can get the oyster shell recycling tax credit, sets a first-come-first-served limit on credits, and requires restaurants to submit an official certificate to claim it.

  • Defines eligible people as state residents with specific fishing or aquaculture licenses from Alabama law.
  • States that tax credits will be given in the order applications are received until they run out for each year.
  • Requires restaurants and other eligible groups to get a signed certificate proving how many shells were recycled before claiming the credit.
  • Sets rules so that partnerships, S-Corporations, or pass-through entities must share the tax credit with their owners based on ownership shares.
  • The amendment does not explain what specific licenses are listed in Sections 9-12-82, 9-12-87, or 9-12-125 of the Alabama Code.
  • It is unclear how much money each person can get because the text only mentions a certificate for the amount recycled but does not state the dollar value per shell.

Bill History

  1. 2026-04-07 Senate

    Currently Indefinitely Postponed

  2. 2026-01-29 Senate

    Read for the Second Time and placed on the Calendar

  3. 2026-01-28 Senate

    Reported Out of Committee House of Origin

  4. 2026-01-28 Senate

    Agriculture, Conservation, and Forestry 1st Amendment

  5. 2026-01-13 Senate

    Pending Committee Action in House of Origin

  6. 2026-01-13 Senate

    Read for the first time and referred to the Senate Committee on Agriculture, Conservation, and Forestry

Official Summary Text

Taxation; to establish an income tax credit for oyster shell recycling

Current Bill Text

Read the full stored bill text 
SB125 INTRODUCED
Page 0
SB125
EJRMI2C-1
By Senator Sessions
RFD: Agriculture, Conservation, and Forestry
First Read: 13-Jan-26
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EJRMI2C-1 01/13/2026 MRF (F)MRF 2026-214
Page 1
First Read: 13-Jan-26
SYNOPSIS:
This bill would establish a state income tax
credit for restaurants that recycle oyster shells.
A BILL
TO BE ENTITLED
AN ACT
Relating to income tax; to establish a tax credit for
restaurants that recycle oyster shells.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. The Legislature finds and declares that
oyster shell material is a beneficial natural resource for
local water quality, aquatic habitats, and the protection of
the coastline of this state. An income tax credit for
restaurants that participate in approved oyster recycling
programs would incentivize the facilitation of more of this
resource to the benefit of the state.
Section 2. (a) For purposes of this section, the
following terms have the following meanings:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) INCOME TAX. The tax imposed by Chapter 18 of Title
40, Code of Alabama 1975.
(3) OYSTER SHELL RECYCLING PROGRAM. The Oyster Shell
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SB125 INTRODUCED
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(3) OYSTER SHELL RECYCLING PROGRAM. The Oyster Shell
Recycling Program or any other oyster shell recycling program
or activity designated by rule by the Alabama Department of
Revenue as an approved program or activity.
(4) RESTAURANT. A facility that prepares and sells food
directly to consumers for immediate consumption.
(b)(1) A restaurant that donates oyster shell material
to an oyster shell recycling program may claim a credit
against the state income tax liability as provided by this
section. The amount of the credit shall equal the lesser of:
a. One dollar ($1) for every 50 pounds of oyster shell
material donated to a qualifying oyster shell recycling
program or activity during the tax year; or
b. Two thousand dollars ($2,000).
(2) The total amount of credits granted shall not
exceed one hundred thousand dollars ($100,000) per calendar
year.
(3) a. The granting of tax credits authorized by this
section shall be on a first-come, first-served basis.
b. The department, by rule, shall provide for any
credits not granted due to the cap provided in subdivision (2)
to receive first priority in the subsequent tax year.
(c) If the amount of the credit exceeds the amount of
the taxpayer's tax liability for the taxable year, the excess
tax credit amount shall constitute an overpayment as defined
in Section 40-18-79, Code of Alabama 1975, and the department
shall refund the overpayment from the collections of the taxes
imposed.
(d) No tax credit provided by this section may be
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SB125 INTRODUCED
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(d) No tax credit provided by this section may be
transferred or sold to another taxpayer.
(e) Any taxpayer claiming the credit shall maintain all
records necessary to verify his or her eligibility for the
credit and for the amount of credit claimed. Upon request, a
taxpayer shall submit to the department any records required
to be maintained by this sectio n in connection with the filing
of the income tax return .
(f) The credit authorized in this section may be
claimed by corporations, individuals, and other entities in
accordance with the following provisions:
(1) An entity taxed as a corporation for Alabama income
tax purposes shall claim any credit authorized by this section
on its corporation income tax return.
(2) An individual shall claim any credit authorized by
this section on its income tax return.
(3) An entity that is not taxed as a corporation shall
claim any credit authorized by this section on the returns of
the partners or members in accordance with the following
requirements:
a. Corporate partners or members shall claim their
share of the credit, respectively, on their corporation income
tax returns.
b. Individual partners or members shall claim their
share of the credit, respectively, on their individual income
tax returns.
(g) The department shall adopt rules to implement the
provisions of this section. The department shall engage and
collaborate with the Commissioner of the Department of
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SB125 INTRODUCED
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collaborate with the Commissioner of the Department of
Conservation and Natural Resources and may incorporate
recommendations of the commissioner in any rules designating
oyster shell recycling programs and activities.
(h) The tax credit allowed under this section may be
claimed beginning with the 2026 tax year and may not be
claimed for tax years after the 2030 tax year.
Section 3. This act shall become effective on June 1,
2026.
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