Bill > HB431

This bill establishes a new tax on underground carbon dioxide storage in Alabama, effective October 1, 2026. It defines "gross value" as the sale price or market value of the carbon dioxide at the time it's injected or stored, and a "carbon dioxide storage well" as any underground space used for this purpose, including Class VI wells regulated by the U.S. Environmental Protection Agency under the Safe Drinking Water Act. The tax rate is set at 20 percent of the gross value of all carbon dioxide injected or stored, with payments due monthly to the Department of Revenue. Of the collected taxes, 50 percent will go to the State General Fund, and the remaining 50 percent will be distributed to the county where the carbon dioxide was stored; if the storage is within a municipality, half of that county's share will go to the municipality. The Department of Revenue is authorized to create rules to implement this new tax.

Budget and Finance

https://alison.legislature.state.al.us/bill-search