For Immediate Release
February 8, 2021
Montgomery, AL – Members of the Alabama House Democratic Caucus overwhelmingly supported HB192, an extension of the expired Alabama Jobs Act, which passed the Alabama House of Representatives on Thursday. The Alabama Jobs Act encourages economic growth by providing tax benefits to employers who create new jobs or invest in capital projects in the state. The bill also reinstates the Growing Alabama Credit, rewarding individual citizens for their investment in economic development organizations and projects in the form of tax credits.
Alabama House Democratic Caucus member Rep. Barbara Drummond (D-Mobile), who serves on the Ways and Means Education Committee worked with sponsor, Rep. Bill Poole, to include language in the bill that specifically recognizes African-American and women-owned businesses, as eligible to receive additional tax credits. If enacted, there will be greater incentives available to support existing businesses in creating jobs and to attract new, diverse businesses to Alabama.
“The House Democratic Caucus remains laser focused on providing economic opportunities for minorities and minority-owned businesses across this state,” said Rep. Drummond. “I am pleased that we have been able to reach across the aisle and work with our Republican colleagues to ensure that HB192 has strong and enforceable language that will both benefit existing business owners and work to attract new businesses to Alabama. The face of this state is changing and it is crucial that we as legislators ensure every possible opportunity and incentive to those who need it the most. This bill is the culmination of six months of effort, and I feel confident that this iteration will translate into meaningful incentives for Alabamians.”
Under the Alabama Jobs Act, Alabama employers are eligible to receive a jobs credit in the amount of up to 3% of the previous year’s annual wages (for qualifying employees and projects.) In accordance with the language championed by Drummond, an additional 1% job credit will be available to minority and women-owned businesses, totaling 4% for ten years. The act encourages investment in rural communities and counties with shrinking populations.
Since the Alabama Jobs Act was initially passed into law in 2015, it has been responsible for 183 new projects; 32,043 new jobs; and $15.7 billion in investments. The bill has prioritized providing much needed aid to our rural communities, including many majority minority communities across the state. Eight out of the 10 top counties for Jobs Act incentives are rural communities.
With the reinstatement of the Growing Alabama Credit, taxpayers are again eligible to receive a dollar-for-dollar tax credit for contributions made to qualifying economic development organizations.
HB192 now moves to the Senate Committee on Finance and Taxation Education.