HJR 162 is a resolution (not a law) urging the Alabama Medicaid Agency to evaluate the costs and potential savings of covering GLP-1 medications for weight management. It directs the agency to assess whether coverage could save money across the Medicaid program, consider new federal drug pricing models, and consult with providers. The agency must report its findings to the legislature before the 2027 session. This resolution directly affects approximately 110,000 Alabama Medicaid members who might qualify for these medications under current FDA guidelines.
HB 393 updates Alabama's tax abatement and incentive laws by replacing outdated references to the "Accelerate Alabama Strategic Economic Development Plan" with the current "CatALyst" economic plan. It also modernizes industry classification codes (NAICS) to the 2022 version, ensuring businesses qualify under the most recent economic sector definitions. The bill directly affects companies seeking tax abatements for projects in qualifying sectors like manufacturing, research, or data processing centers. This is a technical revision to existing law, not a policy change, to align tax incentive programs with current industry standards and economic planning.
HB 399 modifies tax incentives for large data processing centers in Alabama. It limits the maximum tax exemption period to 20 years starting January 1, 2027, and requires these centers to pay state noneducational ad valorem taxes and sales taxes on building materials, power infrastructure, and other specific purchases beginning in 2027. The bill extends the sunset date for existing tax abatements related to data centers and updates code language for clarity. This directly affects new or expanded data centers meeting job and wage thresholds (20+ jobs averaging $40,000+ annual compensation). The changes aim to balance economic development incentives with increased tax revenue collection for infrastructure investments.
HB 516 would expand the audit authority of Alabama's Department of Examiners of Public Accounts to include local water boards and authorities organized under Title 11 of the Alabama Code. Currently, these entities are exempt from such audits. The bill allows the department to conduct one-time audits of these nonprofit water service providers (excluding municipal or county systems) for a reasonable fee, and a second audit if fraud or mismanagement is suspected. This change applies to water boards not incorporated under Title 11 that provide water service to members or the public, effective October 1, 2026.
SB 281 allocates $2 million annually from gas tax revenues to fund the maintenance, programming, and operation of City Walk Birmingham, a public space beneath I-20/59 in Birmingham. Jefferson County is responsible for $1.6 million of this total, while municipalities within Jefferson County collectively contribute $400,000 based on each municipality's proportional share of gas tax revenues. Funds will be deposited into a dedicated account managed by the City of Birmingham and Jefferson County, with strict use limited to City Walk Birmingham's upkeep and public purposes. The bill takes effect October 1, 2026, and requires Jefferson County to collect municipal contributions from future gas tax distributions.
HB 434 changes how Alabama's simplified sellers use tax (SSUT) revenue is distributed. It reduces the portion going to the Education Trust Fund and redirects those funds directly to local school boards based on student enrollment. Specifically, it reallocates funds previously sent to the Education Trust Fund (25% under current law) to local boards of education, while keeping the same total allocation percentages for counties and municipalities. This bill directly affects local school districts by increasing their funding from SSUT proceeds, and the Education Trust Fund by reducing its share. The change would take effect on October 1, 2026.
HB 488 proposes a constitutional amendment for Chilton County to allow residents aged 65 or older who own single-family homes as their primary residence to claim a property tax exemption. The exemption freezes the property’s tax value at its 2026 assessment level (effective October 2027) for eligible homeowners who have lived in the home as their primary residence for at least five years. It requires written application to the county revenue commissioner by December 31, 2027, and does not affect homestead exemptions or millage rate changes. This amendment must be approved by Chilton County voters to become part of Alabama’s constitution.
SB 244 increases the fee paid when recording home loans, deeds of trust, or similar property security instruments in Alabama. The bill modifies how this fee revenue is distributed, directing all proceeds to the Alabama Housing Trust Fund instead of general state funds. This change affects anyone recording such property-related financial instruments (like homebuyers or lenders), with the new revenue specifically funding housing programs. The fee amount itself remains unchanged (30 cents per $100 of debt), but the destination of the funds is now dedicated to housing. The bill makes no changes to the fee calculation method or the instruments subject to the fee.
SB 313 extends Alabama's state income tax credit for rehabilitating certified historic properties through 2032 (instead of ending in 2027) and increases the annual credit limits. It raises the credit amount for urban properties to $25,000 and lowers the threshold for rural properties to $20,000 (based on county population under 175,000). The bill directly affects property owners - individuals or tax-exempt entities - who undertake substantial rehabilitation of historic structures certified by Alabama's Historical Commission. Key provisions include updated definitions for "rural communities" and "substantial rehabilitation," ensuring the credit aligns with federal standards for historic preservation.
This bill increases the income threshold for Alabama's homestead property tax exemption from $12,000 to $16,000 annually for eligible homeowners aged 65+ or those retired due to permanent disability or blindness. It also extends this exemption to unremarried widows or widowers of qualifying individuals, provided their annual income does not exceed $150,000. The exemption applies to property valued at up to $5,000 in assessed value or 160 acres, subject to standard requirements like deed ownership. These changes directly affect homeowners meeting the new income criteria or surviving spouses of those who previously qualified.
