Income Tax; to create the R&D Tax Credit Enhancement Act

This bill creates the R&D Tax Credit Enhancement Act to provide income tax credits for organizations in Alabama that invest in research and development, specifically targeting health sciences, biotechnology, and university-based research. The program would offer a 10% tax credit on qualified research expenses, with higher 15% credits for collaborative research involving in-state academic institutions and up to $250,000 in refundable or transferable credits for startups and small businesses with fewer than 50 employees. The Department of Revenue would administer the program, which is capped at $30 million annually, and publish annual reports on the number of credits issued and the sectors receiving support. The bill would apply to tax years beginning on or after January 1, 2027, and would require a streamlined application process for eligible organizations to claim the credits.