Bill > HB399

This bill modifies existing Alabama tax laws concerning abatements, which are reductions or eliminations of tax liability, primarily for data processing centers and other industrial or research enterprises. Key changes include limiting the exemption period for tax abatements for data processing centers, particularly for those with significant capital investments, and introducing new provisions for extended abatement periods tied to qualified local investments, such as infrastructure improvements or educational support, for projects commencing on or after January 1, 2027. The bill also clarifies that for data processing centers with a total peak demand of 100 megawatts or greater, state noneducational ad valorem taxes will not be abated beyond the date the property is placed in service, effective January 1, 2027, unless the project is located in a "targeted county" where the Governor may grant an abatement for the full exemption period. Additionally, the bill extends the sunset date for certain incentives related to industrial and research enterprises from July 31, 2028, to July 31, 2032, ensuring that projects approved before this new date can still receive their incentives. Finally, it mandates the collection of certain taxes on purchases for data processing centers with a total peak demand of 100 megawatts or greater, effective January 1, 2027, with specific exceptions for certain equipment and infrastructure, and directs these collected taxes to the State General Fund.