HB 399

This act amends Sections 40-9B-3, 40-9B-4, 40-9B-4.1, and 40-23-35, Code of Alabama 1975, regarding tax abatements granted on or after January 1, 2027, under the Tax Incentive Reform Act, to: (1) limit the maximum exemption period for tax abatements granted to data processing centers to 20 years, subject to an additional 10 years of abatement if the private user agrees in writing to continue providing qualified local investments to the benefited community and the Departments of Revenue and Commerce approve; (2) prohibit an abatement of state noneducational ad valorem taxes extending beyond the date that certain data processing centers are placed into service; (3) provide that construction related transaction taxes on equipment necessary for the operation of certain data centers are eligible for abatement so long as an abatement does not extend beyond the date that the data processing center is placed into service; (4) require the proceeds collected on construction related transaction taxes for data processing centers be paid into the State General Fund; and (5) extend the statutory sunset date for incentives under the Tax Incentive Reform Act from July 31, 2028 to July 31, 2032.