Tax abatements for data processing centers, exemption period limited, collection of certain taxes on purchases required, sunset date extended
SB 265 modifies Alabama's tax incentives for data processing centers. It limits the maximum tax abatement period to 20 years starting January 1, 2027, and requires large data centers (meeting specific job and wage thresholds) to pay state sales/use taxes on purchases beginning the same date. The bill also extends the sunset date for these abatements and updates related tax code language. These changes directly affect new or expanded data processing centers qualifying under Alabama's definition (20+ jobs averaging $40,000+ annual compensation). The bill aims to balance economic development incentives with increased tax revenue collection for qualifying facilities.
Bill status
passed
3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Mar 2026
Senate Passage
Mar 2026
House Passage
Governor
Introduced Feb 5, 2026
Last action Apr 9, 2026
Maddy AI version diff · 2 comparisons
What changed between versions
Engrossed
→
Economic Development and Tourism Engrossed Substitute Offered
·
1 edit
·
Mar 12, 2026
MINOR
The bill's text has been updated to reflect that it was reported by the House Economic Development and Tourism committee as a substitute version. The substantive legal content regarding Alabama Code sections 40-9B-3, 40-9B-4, and 40-9B-4.1 remains unchanged, with only the header information and page markers modified to indicate the new legislative status.
Scope change
The bill's scope and applicability remain unchanged; only the metadata indicating the bill's current legislative stage was updated.
TECHNICAL
Header information was updated to show the bill is now the 'House Economic Development and Tourism Reported Substitute' dated 03/18/2026, replacing the previous 'Engrossed' status.
Floor votes
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
22
Key actions
8
Committee
4
Amendments
10
Apr 9, 2026
Introduced
Economic Development and Tourism Engrossed Substitute Offered (Economic Development and Tourism)
lower
Mar 18, 2026
Lower · Passed
Reported Out of Committee Second House (Economic Development and Tourism)
lower
Mar 12, 2026
Lower · Passed
Pending Committee Action in Second House (Economic Development and Tourism)
lower
Mar 12, 2026
Upper · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 851
upper
Mar 12, 2026
Amended
Livingston motion to Adopt - Lost Roll Call 850
upper
Mar 12, 2026
Introduced
Livingston 1st Amendment Offered
upper
Mar 12, 2026
Upper · Passed
Givhan motion to Adopt - Adopted Roll Call 849
upper
Mar 12, 2026
Introduced
Givhan 1st Amendment Offered
upper
Mar 12, 2026
Upper · Passed
Jones motion to Adopt - Adopted Roll Call 848
upper
Mar 12, 2026
Introduced
Jones 1st Substitute Offered
upper
Mar 12, 2026
Upper · Passed
Jones motion to Table - Adopted Voice Vote
upper
Mar 12, 2026
Introduced
Fiscal Responsibility and Economic Development 1st Amendment Offered (Fiscal Responsibility and Economic Development)
upper
Feb 11, 2026
Upper · Passed
Reported Out of Committee House of Origin
upper
Feb 11, 2026
Introduced
Fiscal Responsibility and Economic Development 1st Amendment (Fiscal Responsibility and Economic Development)
upper
Feb 5, 2026
Upper · Passed
Pending Committee Action in House of Origin (Fiscal Responsibility and Economic Development)
upper
0 primary · 0 co-sponsors
Sponsors
No sponsor information available.
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