Budget & Taxes (Small Business)

This bill increases the market value threshold for state ad valorem tax exemptions on tangible personal property for small businesses from $100,000 to $120,000. It specifically applies to businesses with fewer than 50 employees, allowing them to keep more of their business equipment and assets tax-free. The legislation also permits local governments to create similar exemptions for their jurisdictions and includes minor technical updates to the state tax code. This change directly affects small business owners in Alabama who own tangible personal property within the new value limit.

This bill establishes the Main Street Revival Act to support economic development in small Alabama towns with populations under 25,000. It creates four grant programs administered by the Alabama Department of Economic and Community Affairs to help businesses start or expand, preserve historic commercial buildings, support temporary retail spaces and business mentorship, and assist local governments with updating zoning and land use regulations. Additionally, the bill creates a 25 percent income tax credit for property owners who renovate eligible vacant or underutilized commercial properties. Funding for these programs depends on future legislative appropriations, and the law takes effect on January 1, 2027.