HB 28 Alabama House · 2026 Regular Session

Taxation; to establish an income tax credit for oyster shell recycling

HB 28 would create a state income tax credit for Alabama restaurants that donate oyster shells to approved recycling programs. Restaurants can claim up to $2,000 per year (based on $1 for every 50 pounds of shells donated), with a total annual cap of $100,000 across all participating businesses. Credits are awarded on a first-come, first-served basis and are only available for tax years 2026 through 2030. The Alabama Department of Revenue will collaborate with conservation officials to designate eligible recycling programs.

Bill status passed 3 of 5 stages cleared

Introduction

Aug 2025

Committee Review

Apr 2026

House Passage

Jan 2026

Senate Passage

Governor

Introduced Aug 11, 2025 Last action Apr 7, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 7 edits · Jan 20, 2026

MODERATE

The bill was updated from an 'Introduced' draft to an 'Engrossed' final version, incorporating amendments that expanded eligibility to include other eligible persons (such as licensed oyster farmers) alongside restaurants. The definition of the recycling program was broadened to include activities designated by the Department of Revenue, and the bill now explicitly prohibits the transfer or sale of tax credits. Additionally, the effective start date for claiming the credit was extended from 2026 to 2027, and the expiration date was pushed back from 2030 to 2031.

Scope change

The bill's scope expanded to include entities other than restaurants, such as licensed oyster farmers, and clarified that the Department of Revenue can designate various recycling activities as eligible.

DEFINITION

The definition of 'Oyster Shell Recycling Program' was updated to allow the Department of Revenue to designate other programs or activities by rule.

ELIGIBILITY

A new definition for 'Other Eligible Person' was added, allowing licensed oyster farmers and similar entities to claim the credit.

The rules for pass-through entities (partnerships, S-corps) were updated to clarify that credits are passed through to partners or shareholders on a pro rata basis.

REQUIREMENT

New provisions require a standardized certificate signed by the restaurant and the recycling program to substantiate the credit, with automatic denial if not filed.

The Department of Revenue is now required to collaborate with the Department of Conservation and Natural Resources when designating eligible recycling programs.

ENFORCEMENT

A new clause explicitly states that tax credits cannot be transferred or sold to another taxpayer.

TIMELINE

The tax credit can now be claimed starting with the 2027 tax year and expires after the 2031 tax year, extending the original timeline.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 7, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Jan 20, 2026

Upper · Passed

Pending Committee Action in Second House (Finance and Taxation Education)

upper

Jan 20, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 48

lower

Jan 20, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 47

lower

Jan 20, 2026

Introduced

Ways and Means Education Engrossed Substitute Offered (Ways and Means Education)

lower

Jan 14, 2026

Lower · Passed

Reported Out of Committee House of Origin (Ways and Means Education)

lower

Jan 14, 2026

Lower · Passed

Reported Out Committee House of Origin- Committee Amendment (Ways and Means Education)

lower

Jan 13, 2026

Lower · Passed

Pending Committee Action in House of Origin (Ways and Means Education)

lower

1 primary · 0 co-sponsors