Ala. Code § 40-18-375 — Jobs Credit Against Utility Taxes; Realization of Benefits; Rulemaking Authority

(a)(1) If provided for in the project agreement and in accordance with the terms therein, the incentivized company is allowed a jobs credit against utility taxes, in an annual amount up to 3 percent of the wages paid to eligible Alabama resident employees during the prior year. The incentive period shall be not exceed 10 years.
(2) If the incentivized company is engaged in pharmaceutical, biomedical, medical technology, or medical supplies manufacturing, or its related research and development activities, the incentivized company is allowed a jobs credit against utility taxes, in an annual amount up to four percent of the wages paid to Alabama resident employees during the prior year. The incentive period shall not exceed 10 years. This applies to companies that predominantly conduct an activity described by NAICS code 3254, 339112, or 339113, to include related research and development.
(b) The project agreement shall provide that one of the following methods shall be used to realize the benefits of the jobs credit:
(1)a. As further provided in the project agreement, the jobs credit may be paid to the incentivized company as a refund out of utility taxes during the incentive period, regardless of the amount of utility taxes actually paid by the incentivized company.
b. For each year of the incentive period for the jobs credit, the incentivized company shall submit to the Department of Commerce a certification as to the wages paid to employees during the prior year. Following such examination as it deems necessary, the Department of Commerce may certify the information and deliver the same to the Department of Revenue. Thereafter, the Department of Revenue shall calculate the correct refund and issue it directly to the incentivized company.
(2)a. The jobs credit may be claimed as a credit against utility taxes actually paid until April 20, 2023, after which time the provisions of subdivision (1) shall control, and the offset provided in this subdivision shall cease unless the provisions stated in subdivision (b)(1) are explicitly stated in the project agreement that was executed prior to April 20, 2023. In any one year, if the credit exceeds the amount of taxes that are allowed to be offset by the project agreement and that are owed by the incentivized company, the incentivized company may carry the credit forward, to the extent allowed in the project agreement. No carryforward shall be allowed for more than five years. Rules similar to those used for Section 40-18-15.2 shall be applied.
b. Prior to claiming the jobs credit as provided in this subdivision, the incentivized company shall submit to the Department of Commerce a certification as to the wages paid to employees during the prior year. Following such examination as it deems necessary, the Department of Commerce may certify the information and deliver same to the Department of Revenue. Thereafter, the Department of Revenue shall allow the jobs credit.
(c) The realization methods in subsection (b) shall not create debts of the state within the meaning of Section 213 of the Constitution of Alabama of 2022.
(d) The Department of Finance shall adopt rules to ensure that the credit in no case would reduce the distribution for the Alabama Special Mental Health Trust Fund by using any unencumbered funds.