Alabama Legislative Summary: Economic Development

08.05.2024

During this year’s session, the Alabama Legislature considered multiple pieces of legislation focusing on improving Alabama’s economic opportunities and long-term economic development vision.   

In collaboration with Maynard Nexsen’s Alabama Government Affairs team, the firm’s Alabama-based Economic Development practice group presents a comprehensive summary of the legislation that was approved during the session.

If you have any questions about this legislation, please get in touch with the members of our Alabama-based team.   

Alabama Growth Alliance 

This legislation establishes the Alabama Growth Alliance, a public corporation that supports economic development in Alabama. The board has the power to provide input and support regarding the state's long-range economic development vision and strategies, the communication plan for key stakeholders to be informed on economic development progress and results, the effectiveness of key economic development incentives, and the implementation of economic development objectives. The board may also negotiate with economic development entities to support such groups with evaluation and planning opportunities. A board of public and private leaders will govern this public corporation. The board is solely vested with the powers needed for the management and control of the corporation. The board is comprised of fifteen members, seven of which are state officials and the remainder of which are private sector appointees.  

Research Corridors 

This legislation authorizes local governments to create research and development corridors within their respective corporate limits. The bill details the corridors' governance structure, qualifying activities within the corridors, and exemptions from the competitive bidding process for the corridors. The corridors are required to be nonprofit corporations and are exempt from certain taxes. Each research and development corridor is overseen by a board of at least three persons. Each board has the authority, in the name of the corridor, to acquire or lease property and grant, loan, or donate money to public and private corporations to assist in establishing a research and development corridor.   

Workforce Development Expansion 

This legislation renames the Secretary of Labor and the Department of Labor to the Secretary of Workforce and the Department of Workforce and alters the Department’s duties.  The Department will collect and publish data regarding workforce participation in the state. Additionally, this legislation establishes a board that will address workforce participation in the state.  

Alternative Diploma Program 

This legislation establishes an alternative diploma program focusing on career and technical education.  Specifically, it creates a new Workforce Pathways diploma at the K-12 level, with a curriculum developed by the State Department of Education. This diploma pathway requires fewer math and science credits, allowing students to earn credits through career and technical education courses instead.  

Child Care Tax Credits 

This legislation creates childcare tax credits for employers and childcare centers, with additional grants for nonprofit childcare providers. The law allows employers to claim up to $600,000 in tax credits annually from 2025 to 2027, with full claims for small employers and partial claims for larger employers for childcare facilities and services expenses. Childcare centers can also receive credits based on the quality of care provided.   

Housing Tax Credits 

This legislation establishes a tax incentive for qualified taxpayers involved in approved workforce housing initiatives in Alabama. The program offers tax deductions to investors in multifamily housing in return for their commitment to maintain rent prices at a manageable rate. Mirroring the federal low-income housing tax credit, this state-level credit will be typically granted alongside the currently underused “4%” federal tax credits, accessible via private tax-exempt activity bonds. 

About Maynard Nexsen

Maynard Nexsen is a full-service law firm with more than 550 attorneys in 24 offices from coast to coast across the United States. Maynard Nexsen formed in 2023 when two successful, client-centered firms combined to form a powerful national team. Maynard Nexsen’s list of clients spans a wide range of industry sectors and includes both public and private companies. 

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