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SB291 INTRODUCED
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SB291
BYEALJ4-1
By Senator Coleman
RFD: Finance and Taxation General Fund
First Read: 10-Feb-26
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BYEALJ4-1 02/10/2026 VSM (L)ma 2026-829
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First Read: 10-Feb-26
SYNOPSIS:
Under existing law, an entity is not
disqualified from receiving tax incentives under the
Alabama Jobs Act if it violates human trafficking or
child labor laws.
This bill would prevent entities who violate
human trafficking or child labor laws from receiving
economic tax incentives under the Alabama Jobs Act.
This bill would require an entity that engages in any
act or practice that violates human trafficking or
federal child labor laws to reimburse the state and
local government the cost of any economic development
tax incentives received by the corporation or legal
entity.
This bill would also make nonsubstantive,
technical revisions to update the existing code
language to current style.
A BILL
TO BE ENTITLED
AN ACT
Relating to economic development; to require an entity
to reimburse the state and local government the cost of any
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to reimburse the state and local government the cost of any
economic development incentives received by the entity if the
entity violates human trafficking or child labor laws; to
amend Sections 40-18-373 and 40-18-374, Code of Alabama 1975,
to require the Secretary of Commerce to verify an entity does
not engage in any act or practice that violates human
trafficking or federal child labor laws to qualify for tax
incentives; and to make nonsubstantive, technical revisions to
update the existing code language to current style.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Any entity that engages in any act or
practice that violates human trafficking laws as provided in
Sections 13A-6-152 and 13A-6-153, Code of Alabama 1975, or
federal child labor provisions of the Fair Labor Standards Act
of 1938 as provided in 29 U.S.C. § 212, shall reimburse to the
state and local government the cost of any economic
development incentive, including any tax abatement, grant, or
tax refund received by the entity pursuant to Title 40, Code
of Alabama 1975, from the date the entity is found guilty of
or liable for the violation.
Section 2. Sections 40-18-373 and 40-18-374, Code of
Alabama 1975, are amended to read as follows:
"§40-18-373
In order for a company to be an approved company, all
of the following shall occur:
(1) For any company that proposes a qualifying project,
the Secretary of Commerce shall make all of the following
findings:
a. That the The project is in fact a qualifying
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a. That the The project is in fact a qualifying
project ;.
b. That the The qualifying project will not decrease,
directly or indirectly, Alabama's exports ; and.
c. That the The amount of tax incentives sought are is
exceeded by anticipated revenues for the state, including
income, property, business privilege, utility, gross receipts,
sales, and use tax revenues that are generated by the economic
activity resulting from the project, as they arise from the
following aspects of the qualifying project:
1. Construction activities related to the qualifying
project ;.
2. The purchase of building materials and the initial
equipping of the qualifying project ;.
3. The subsequent equipping of the qualifying project ;
and.
4. The operation of the qualifying project.
d. The company, any subsidiary of the company, or
company suppliers do not engage in any act or practice that
violates human trafficking laws as provided in Sections
13A-6-152 and 13A-6-153, or child labor provisions of the Fair
Labor Standards Act of 1938, provided in 29 U.S.C. § 212.
(2) Upon making affirmative findings on the criteria
set forth in subdivision (1) that are applicable, the
Secretary of Commerce shall recommend to the Governor that the
company be designated as an approved company. The name of the
company and information collected about it shall be forwarded
to the Governor.
(3) After reviewing the information provided by the
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(3) After reviewing the information provided by the
Secretary of Commerce, the Governor shall also determine
whether the company meets the criteria set forth outlined in
subdivision (1). If the Governor makes such a finding, the
company shall be an approved company."
"§40-18-374
(a) An incentivized company may claim either or both of
the jobs act incentives, to the extent provided in the project
agreement.
(b) In order for an incentivized company to claim the
jobs act incentives, the Governor and the incentivized company
shall execute a project agreement. The agreement shall contain
all of the following:
(1) The name of the incentivized company.
(2) The location of the qualifying project.
(3) The activity to be conducted at the qualifying
project.
(4) The jobs act incentives to be granted.
(5) The capital investment to be made at the qualifying
project.
(6) The time period for the capital investment to be
made at the qualifying project.
(7) The number of employees at the qualifying project.
(8) The anticipated wages to be paid to or for the
benefit of employees during the incentive period for the jobs
created.
(9) The dates or conditions that shall begin the
running of the incentive periods for applicable jobs act
incentives.
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incentives.
(10) The lengths of the incentive periods for the jobs
act incentives.
(11) Any annual or aggregate limitations on the amount
of either or both of the jobs act incentives that can be
claimed during an incentive period.
(12) Provisions governing the recapture of all or part
of the jobs act incentives awarded to the qualifying project,
should the approved company default on its obligations in the
project agreement.
(13) Provisions governing the recapture of all or part
of tax incentives awarded to the qualifying project if the
approved company, any subsidiary of the company, or supplier
of the company engages in any act or practice that violates
human trafficking laws as provided in Sections 13A-6-152 and
13A-6-153 or federal child labor provisions of the Fair Labor
Standards Act of 1938 as provided in 29 U.S.C § 212.
(13)(14) Whether the project agreement may be assigned
by the approved company the approved company may assign the
project agreement to some other purchaser, assignee, or
successor.
(14)(15) Any other terms, conditions, and limitations
that this article or the Governor may require for an
incentivized company to qualify for and receive a jobs act
incentive.
(15)(16) Any other terms the parties deem necessary or
desirable.
(c) The Governor may decrease the amounts and durations
duration of the jobs act incentives to ensure that the
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duration of the jobs act incentives to ensure that the
anticipated revenues for the state will exceed the amount of
tax incentives sought."
Section 3. This act shall become effective on June 1,
2026.
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