Bill > HB551

This bill, known as the Steel and Advanced Manufacturing Competitiveness Act, aims to bolster Alabama's steel and manufacturing sectors by establishing several programs and incentives. It creates the Steel Industry Relief and Investment Grant Program, administered by the Alabama Department of Commerce, which will provide grants of up to $10 million annually to eligible manufacturers—defined as steel producers or industrial manufacturers in Alabama—experiencing hardship due to "trade disruptions," meaning cost increases, lost markets, or input shortages caused by tariffs, quotas, or other trade restrictions; these grants can be used for working capital, retaining skilled labor, or capital improvements. Additionally, the bill introduces the Manufacturing Innovation and Modernization Tax Credit, a refundable income tax credit for eligible manufacturers investing in advanced machinery, industrial automation, or domestic sourcing, allowing a credit of 20 percent of qualifying investments, with individual taxpayer limits of $1 million and an annual aggregate limit of $10 million, effective from 2027 through 2029. The bill also mandates a preference for domestically produced steel and manufactured components in state infrastructure and construction contracts, unless domestic materials are unavailable or unreasonably priced, and establishes an Advanced Manufacturing Export Expansion Initiative to help manufacturers reach international markets. Finally, it creates an Industrial Trade Vulnerability Monitoring Board to track international trade developments, identify risks, and recommend policies to improve long-term competitiveness for these industries.

Government Affairs

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