This resolution (HR 191) expresses the Alabama House of Representatives' support for creating a state-level tax credit program to expand affordable housing. It specifically advocates for an "Alabama Affordable Housing Investment Credit" administered by the Alabama Housing Finance Authority, which would incentivize financial institutions to fund low-income housing through loans and investments. The resolution directly supports low-income households by aiming to close financing gaps for housing preservation and development. It does not create new law but urges coordination of existing federal housing resources and state-level private capital.
HB 390 expands Alabama's existing employer tax credit program to include expenses for adult day care services. Currently, the credit covers child care costs for employees' children under age 5; this bill adds eligible expenses for adult day care services for employees' dependent adults aged 18 or older who require care due to age, disability, or health conditions. Employers would receive a tax credit equal to 75% of qualifying adult day care expenses (100% for small businesses with fewer than 25 employees), up to $600,000 annually per employer. The change directly affects employers providing care for adult dependents, making these costs tax-deductible under the same framework as current child care expenses.
HB 175 creates a state income tax credit for Alabama farmers and food establishments that donate safe-to-eat farm products (like fruits, vegetables, dairy, or meat) to qualifying food banks. Donors can claim a credit equal to 15% of the donated food's value (capped at $5,000 per year), calculated using federal tax rules for charitable food donations. The credit is limited to $2 million total statewide annually and expires after the 2031 tax year, with applications processed on a first-come, first-served basis until the cap is reached. The bill takes effect in 2027 and aims to encourage food donations without requiring recipients to pay for the donations.
HB 350 creates the Angel Investor Tax Credit Act, allowing Alabama residents or entities investing in qualifying startups to claim a 25% income tax credit on their investments. The credit applies to investments in businesses headquartered in Alabama with ≤100 employees, operating for ≤10 years, and focused on sectors like manufacturing, technology, or agribusiness (excluding retail or financial services). At least 50% of annual credits are reserved for "priority impact businesses" in healthcare, agriculture, education, or workforce development. Credits are capped at $250,000 per investor yearly and $12 million total annually for subsequent years, with requirements to maintain operations in Alabama for three years.
HB 342 allows Alabama to participate in a federal tax credit program that enables individuals to claim a credit on their federal income tax for contributions to scholarship granting organizations (SGOs). The bill requires the Alabama Department of Revenue to annually submit a list of qualifying SGOs in the state to the federal government and certify Alabama's participation. This ensures Alabama residents can use the federal credit for eligible contributions starting in tax years after 2026. The bill takes effect immediately and does not create a new state tax credit.
HB 190 extends Alabama's Railroad Rehabilitation Tax Credit program through 2032, increasing the annual credit cap from $3.7 million to $4.5 million and raising the per-mile credit amount from $3,500 to $4,100. It directly affects railroad companies owning or leasing track in Alabama by allowing them to claim tax credits covering 50% of eligible rehabilitation costs, with credits transferable at 85% value. The program is funded through sales tax revenues in the Education Trust Fund, with specific annual limits on total credits issued across the extended period.
HB 278 makes Alabama's existing income tax credit for volunteer firefighters and rescue squad members permanent and expands it to cover three new categories: members certified at Firefighter I level, Emergency Medical Responders, and fire support persons. The credit amount varies by certification, ranging from $200 to $600 annually, depending on the specific role and training level. To qualify, members must complete 30 hours of approved annual training and submit proof through a standardized certification process to the Department of Revenue. This change applies to tax years beginning January 1, 2027, replacing the previous temporary 2023-2026 window.
SB 125 creates a state income tax credit for Alabama restaurants that donate oyster shells to approved recycling programs. Restaurants can claim a credit of $1 for every 50 pounds of shells donated, up to a maximum of $2,000 per business annually, with a total annual cap of $100,000 across all restaurants. The credit applies to tax years 2026 through 2030 and requires restaurants to maintain records for verification. This policy directly affects restaurants participating in oyster shell recycling, incentivizing them to support coastal conservation efforts through tax benefits.
HB 115 replaces Alabama's existing rural physician tax credit with a new program. It ends the current $5,000 annual credit (set to expire in 2028) by moving the termination date to December 31, 2026, while allowing physicians who used the old credit for fewer than five years to continue claiming it under the new rules through 2026. The new credit provides $10,000 annually for up to four years (for tax years 2027-2031) to physicians practicing in defined rural communities (populations under 75,000, including small municipalities or unincorporated areas). Physicians must apply through the Alabama Statewide Area Health Education Center Program Office, which verifies eligibility and issues certification before claiming the credit.
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.
