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SB289 ENROLLED
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SB289
BYBRGQ4-2
By Senator Singleton
RFD: Finance and Taxation Education
First Read: 10-Feb-26
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First Read: 10-Feb-26
Enrolled, An Act,
Regarding the Growing Alabama Act; to amend Sections
40-18-417.1, 40-18-417.2, and 40-18-417.3, Code of Alabama
1975, to allow sites owned by one or more entities to qualify
for Growing Alabama tax credits if all parties listed on the
deed are eligible applicants; and to make nonsubstantive,
technical revisions to update existing code language to
current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 40-18-417.1, 40-18-417.2, and
40-18-417.3, Code of Alabama 1975, are amended to read as
follows:
"§40-18-417.1
For the purposes of the Growing Alabama Act pursuant to
this article, the following words and phrases shall have the
following meanings:
(1) CAPITAL IMPROVEMENTS. Construction and
rehabilitation expenses of a capital nature at an inland port
or intermodal facility, the dredging of waterways in the
immediate vicinity of an inland port, and the expansion of
onsite storage facilities at an inland port or intermodal
facility.
(2) ECONOMIC DEVELOPMENT ACTIVITIES. Activities and
initiatives that enhance the use of, and flow of goods
through, an inland port or intermodal facility.
(3) ECONOMIC DEVELOPMENT ORGANIZATION. A local economic
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(3) ECONOMIC DEVELOPMENT ORGANIZATION. A local economic
development organization or a state economic development
organization.
(4) GROWING ALABAMA CREDIT. The credit provided for in
subsection (a) of Section 40-18-417.4 (a).
(5) INDUSTRY or BUSINESS. An entity that would conduct
at a site an activity that is primarily described in Section
40-18-372(1).
(6) INLAND PORT. Any port on a navigable river away
from traditional land, air, and coastal borders.
(7) INTERMODAL FACILITY. Any facility that
interconnects two or more different modes of air, rail, or
road traffic serving multiple customers, and which involves
storage facilities.
(8) LOCAL ECONOMIC DEVELOPMENT ORGANIZATION.
Organizations which are determined by the Department of
Commerce to meet both of the following criteria:
a. The organization is an Alabama entity not operating
for profit, including, but not limited to, a municipality or
county, an industrial board or authority, a chamber of
commerce, or some other foundation or Alabama nonprofit
corporation charged with improving a community or region of
the state.
b. The organization has a record of supporting or
otherwise participating in economic development in some part
of this state.
(9) RENEWAL OF ALABAMA COMMISSION. The Renewal of
Alabama Commission created by Section 40-18-402.
(10) SITE. Real property owned by aone or more local
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(10) SITE. Real property owned by aone or more local
economic development organization organizations and intended
for use by an industry or business.
(11) STATE ECONOMIC DEVELOPMENT ORGANIZATION. An
organization that is determined by the Department of Commerce
to be an Alabama entity not operating for profit which is
charged with improving the state or a region of the state and
has a record of supporting or otherwise participating in
economic development in the state."
"§40-18-417.2
(a)(1) A local economic development organization that
owns a site , either solely or jointly with other local
economic development organizations, may apply to the
Department of Commerce for funding to solve an inadequacy
involving the site. For sites with multiple owners, all owners
shall submit a joint application as co-applicants. The
application by the local economic development organization
shall include at least one of the following:
a. If there is a pending expression of interest about
the site from an industry or business, a list of the site
preparation or public infrastructure work needed to make the
site acceptable to the industry or business.
b. If the site has been offered to one or more
industries or businesses but the offer did not result in the
industry or business locating on the site, a list of the site
preparation or public infrastructure work that, if it had been
completed, would have made the site acceptable to the
industries or businesses.
c. If the site is an industrial or research park that
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c. If the site is an industrial or research park that
needs connections to interstates, highways, roadways, rail
systems, or sewer, fiber, electrical, gas, or water
infrastructure, a list of the site preparation or public
infrastructure work needed.
d. Capital improvements or economic development
activities at an inland port or intermodal facility, as
described in Section 40-18-417.1 ;, provided that the
application is accompanied by an economic impact report on
such improvements or activities.
e. Any site improvement or public infrastructure work
in census tracts that meets the definition of low-income
communities pursuant to 26 U.S.C. § 45D(e) as those
communities were identified as of January 1, 2015, or in such
a community identified thereafter.
(2) An economic development organization may apply to
the Department of Commerce for funding to undertake the
construction, maintenance, promotion, operation, management,
leasing, and subleasing of an agricultural center that
includes a multi-use facility and related commercial and
noncommercial structures for livestock, equestrian, small
animal shows and events, spectator events, trade shows,
educational conferences, agricultural and agricultural related
industries, educational, demonstrational or training purposes,
educational and training conferences or events, recreational
vehicle rallies, recreational vehicle multi-day parking,
hosting of corporate and non-corporate organization meetings,
use as fair grounds, operation of retail activities, and other
events and facilities expected to draw participants and
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events and facilities expected to draw participants and
spectators from states located across the southeastern United
States, with a projected total annual economic impact upon
completion of all phases of the agricultural center of at
least thirty-five million dollars ($35,000,000) and with the
related and supporting infrastructure and facilities having a
projected capital expenditure upon completion of all phases of
the agricultural center of at least one hundred million
dollars ($100,000,000) ;, provided that the application is
accompanied by an economic impact report on the agricultural
center.
(b) The application shall include quotes for the
completion of the work, following compliance with the
procedures set forth by the Department of Economic and
Community Affairs, as if the organization were disbursing
state funds received from the department.
(c) The application provided in paragraph (a)(1) a. or
b. shall include an estimate of the number of jobs, wages, and
capital investment that would have been undertaken by the
industries or businesses referred to in paragraph (a)(1) a. or
b.
(d) The application provided in subsection (a) shall
include proof that the economic development organization each
applicant or co-applicant has in full force and effect a
conflict of interest policy consistent with that found in the
instructions to Form 1023 issued by the Internal Revenue
Service.
(e) The application provided in subsection (a) shall
include a notarized affirmation by an officer of the economic
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include a notarized affirmation by an officer of the economic
development organization that the submission of the
application did not violate the conflict of interest policy
referred to in subsection (d).
(f) If the site is owned by one or more economic
development organizations, the application provided in
subsection (a) must be jointly submitted by all economic
development organizations. Each co-applicant must submit the
conflict of interest policy referred to in subsections (d) and
(e)."
"§40-18-417.3
(a) Following a review, if the Department of Commerce
approves the application provided in subsection (a) of Section
40-18-417.2 (a), it shall forward the application to the
Renewal of Alabama Commission.
(b) The Renewal of Alabama Commission shall consider
the application and shall approve it if the commission deems
it worthy of approval. As to improvements at industrial sites,
the commission shall give preference to sites with at least
1,000 acres of available space. As to applications for
projects located in communities which have the potential to
provide additional funding separate from the Growing Alabama
Credits, the commission shall take into consideration whether
the separate funding is to be provided to the project that is
the subject of the application. Meetings of the commission are
subject to Chapter 25A of Title 36. Notwithstanding the
foregoing, the commission may meet by telephone or some other
telecommunications device so long as members of the public are
allowed the opportunity to listen to or otherwise observe the
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allowed the opportunity to listen to or otherwise observe the
commission's deliberations.
(c) The approval of an application by the commission
shall specify the amount of money which the economic
development organization is allowed to receive so that it can
complete the work specified in the application.
(d) Following approval by the commission, the
Department of Commerce shall enter into an agreement with the
economic development organization all applicants or
co-applicants. The agreement shall require all co-applicants
to be jointly and severally liable for the proper disposition
of funds and for the submission of all required reports and
financial reviews. The agreement shall further which shall do
all of the following:
(1) Require the economic development organization to
use funding received as a result of this law only for the
purposes approved by the commission as expressed in the
agreement.
(2) Require the economic development organization to
make periodic reports, not more often than annually, to the
Department of Commerce and the commission, as required by the
commission, on the disposition of the funds. As to a project
described in subdivision (a)(1) of Section 40-18-417.2 (a)(1) ,
the report shall include information on the marketing of the
site, and the ultimate use of the site until such time as it
makes a final report. As to a project related to inland ports
or intermodal facilities as described in paragraph (a)(1) d.
of Section 40-18-417.2 (a)(1)d. or a project related to an
agricultural center as described in subdivision (a)(2) of
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agricultural center as described in subdivision (a)(2) of
Section 40-18-417.2 (a)(2) , the report shall include an
economic impact report.
(3) Require the economic development organization to
provide a review of its financial accounts as directed by the
Renewal of Alabama Commission.
(e) For any approved applications, the Department of
Commerce shall notify the Department of Revenue of the
information specified in subsection (c).
(f) The Department of Commerce shall publish on its
website a list of all approved applications and a list of the
economic development organizations that made the approved
applications."
Section 2. This act shall become effective on June 1,
2026.
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2026.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB289
Senate 26-Feb-26
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Passed: 08-Apr-26
By: Senator Singleton
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