§ 40-18-370 — Short Title; Legislative Findings; Definitions

Alabama § 40-18-370

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 18: Income Taxes
• Art. 16: Alabama Jobs Act

Text

(a) This article shall be known and may be cited as the Alabama Jobs Act.
(b) The Legislature makes the following findings:
(1) The economic well-being of the citizens of the state will be enhanced by the increased development and growth of employment within Alabama.
(2) It is in the best interests of the state to provide certain incentives to allow the state to foster economic development through the recruitment of quality projects and the expansion of existing businesses within Alabama.
(3) The incentives provided for in this article do not raise any taxes for any individuals or businesses in Alabama under state law.
(4) The incentives provided in this article will allow the state to encourage the creation of new jobs that may not otherwise exist within the State of Alabama.
(5) The incentives provided in this article will increase revenues for the state without increasing taxes.
(6) The Constitution of Alabama grants the Legislature the authority to approve and authorize exemptions, exclusions, deductions, and credits from taxation in order to define the net proceeds of any tax payable under state law.
(7) The Constitution of Alabama was framed, and the laws of the state were enacted, with the goal of protecting, encouraging, and developing individual enterprise.
(8) The incentives provided in this article will not decrease the salary paid to any education personnel.
(9) The powers to be granted and the purposes to be accomplished by this article will create an environment for the recruitment of quality projects and the expansion of existing businesses within Alabama.
(10) Economic development through tax and financial incentives benefits the citizens of the state and is a public purpose of the state.
(c) In addition to the definitions found in Section 40-18-1, the following words and phrases have the following meanings:
(1) APPROVED COMPANY. Any company determined by the Secretary of Commerce and the Governor to meet the criteria provided in Section 40-18-373.
(2) CAPITAL INVESTMENT. All costs and expenses incurred by the incentivized company in connection with the acquisition, construction, installation, and equipping of a qualifying project, if such costs are required to be capitalized for purposes of the federal income tax, determined without regard to any rule that permits expenditures properly chargeable to a capital account to be treated as current expenditures. However, for any project involving the extraction of natural resources, the capital investment shall not include the costs of acquiring land, land recording fees, architectural and engineering services, environmental studies and environmental mitigation.
(3) COMPANY. Anyone or anything that has the powers to own a project and have employees.
(4)
EMPLOYEES.
Individuals employed in full time positions created by or through a qualifying project
:
a. Who are being paid directly by an approved company, related company, common paymaster,
or
joint venturer
;
and
b. Whom the approved company, related company, common paymaster,
or
joint venturer
identifies as its employees to
the Department of Revenue, or the Department of Labor on returns or reports filed with the foregoing, including, but not limited to,
Form A-6, Form A-1, Form A-2, UC-CR-4, and UC-10-R.
(5)
INCENTIVE PERIOD. The period or periods of time during which an incentivized company can receive one or more of the jobs act incentives.
(6)
INCENTIVIZED COMPANY. An approved company and any related company that are allowed to claim one or more of the jobs act incentives as provided for in the project agreement.
(7)
INVESTMENT CREDIT. The annual incentive provided in Section 40-18-376.
(8)
JOBS ACT INCENTIVES. The jobs credit and the investment credit as authorized and provided for in this article.
(9)
JOBS CREDIT. The annual incentive provided in Section 40-18-375.
(10)
NAICS CODE. Any sector, subsector, industry group, industry or national industry of the 2012 North American Industry Classification System, or any similar classification system developed in conjunction with the United States Department of Commerce or Office of Management and Budget.
(11)
PROJECT. Any land, building, or other improvements, and all real and personal properties, whether or not contiguous and whether or not previously in existence, if in Alabama and if deemed necessary or useful in connection with an activity listed in Section 40-18-372(1).
(12)
PROJECT AGREEMENT. The agreement entered into between an approved company and the Governor establishing the terms and conditions for the provision of the jobs act incentives, as provided for in Section 40-18-374.
(13)
QUALIFYING PROJECT. Any project to be undertaken by an approved company that satisfies Section 40-18-372.
(14)
RELATED COMPANY.
Any entity that owns
or is owned,
directly or through one or more entities, a 50 percent or greater interest in the capital or profits of another
.
(15) RENEWABLE ENERGY GENERATION. Energy derived from biomass, geothermal, hydrogen, hydropower, marine energy, solar, or wind.
(16) UTILITY TAXES. The taxes imposed by Sections 40-21-82 and 40-21-102.
(17) WAGES. Total wages of an employee, including gross wages, salaries, overtime and bonuses, defined by reference to Section 25-4-16(b), without application of Sections 25-4-16(b)(1), 25-4-16(b)(2)a., 25-4-16(b)(3), and 25-4-16(b)(4).

Legislative History

(Act 2015-27, p. 103, §§1-3; Act 2016-321, p. 799, §1; Act 2017-442, §1(b)(7); Act 2023-34, §2.)