Bill > SB265

This bill modifies existing Alabama tax laws related to abatements, which are reductions or eliminations of tax liability, primarily for data processing centers and certain industrial or research enterprises. Key changes include limiting the exemption period for data processing centers based on their capital investment, with longer periods available for investments exceeding $200 million and $400 million, and introducing a new sunset date of January 1, 2027, for the longest 30-year abatement for data processing centers, with specific provisions for projects with a total peak demand of 100 megawatts or greater that may limit state tax abatements to the date the property is placed in service, unless located in a "targeted county." The bill also extends the sunset date for certain incentives provided by Act 2012-210 from July 31, 2028, to July 31, 2032, ensuring that projects approved before this new date can still receive their incentives. Additionally, it clarifies that certain taxes collected on construction-related transaction taxes for data processing centers will be distributed to the State General Fund starting January 1, 2027, and includes a provision that existing incentives for projects executed or expanded before the bill's effective date will continue for 10 years if located in a Class 3 municipality.