Alabama House Bill HB443

Alabama 2023 Regular Session

• Introduced: 5/9/23
• Refer: 5/9/23
• Report Pass: 5/17/23

Caption

Relating to economic tax incentives; to amend Section 40-1-50, Code of Alabama 1975; to change the reporting date requirements of state agencies which administer economic tax incentives; to align committee schedules to review state agency reports; to establish sunset dates for tax incentive programs; to establish future sunset dates for extended tax incentive programs; and to provide required guidelines for all new incentive legislation.

Impact

The introduction of HB443 is seen as an effort to enhance transparency and accountability within the state's economic incentive programs. By requiring annual reports detailing the performance of each tax incentive, the legislature will be better equipped to evaluate their success in fostering economic development. The establishment of sunset dates for poor-performing programs allows for a more adaptable approach to state incentives while ensuring ongoing legislative scrutiny is maintained. This change is expected to streamline the process and help allocate state funds more effectively.

Summary

House Bill 443 aims to amend Section 40-1-50 of the Code of Alabama 1975 to provide new regulations concerning economic tax incentives. The bill proposes changes to the reporting requirements for state agencies that manage these incentives, seeks to better synchronize legislative reviews of these reports, establishes sunset provisions for existing and future tax incentives, and sets forth guidelines for new incentive legislation. In essence, it intends to create a more structured framework for assessing the effectiveness and economic impact of these incentives.

Contention

While the bill is generally viewed as a move towards greater accountability, there are concerns regarding the potential bureaucratic burden it may impose on state agencies that administer these incentives. Critics may argue that while increased reporting is beneficial, it could also lead to delays and complications in the disbursement of funds. Additionally, provisions that require the evaluation of each incentive's impact on local economies have raised questions about how such assessments would be conducted and adhered to within the state's current administrative framework.