Taxation, sales tax exemptions, sales and use tax exemption provided for certain purchases of diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products

Relating to state income tax; to establish the Preceptor Tax Incentive Program to provide income tax credit incentives for certain medical students who train in rural and underserved counties in the state.

Relating to sales taxes; to amend Section 40-23-1, as last amended by Acts 2022-199 and 2022-291, 2022 Regular Session, Code of Alabama 1975, Section 40-23-2, as last amended by Act 2022-346, 2022 Regular Session, Code of Alabama 1975, Section 40-23-60, as last amended by Act 2022-199, 2022 Regular Session, Code of Alabama 1975, and Section 40-23-61, Code of Alabama 1975; to define "food" and begin phasing-out the state sales and use tax on food on September 1, 2023; to require certain growth targets in the Education Trust Fund for future sales tax reductions on food; to establish the sales and use tax rate on food for purposes of county and municipal sales and use taxes as the existing general or retail sales and use tax rate; and to authorize a county and municipality to reduce the sales and use tax rate or exempt food from local sales and use taxes.

Relating to the Entertainment Industry Incentive Act of 2009; to amend Sections 41-7A-40, 41-7A-41, 41-7A-42, 41-7A-43, 41-7A-45, and 41-7A-48, Code of Alabama 1975, to expand the incentive by renaming it the Film and Music Incentive Act of 2023, to allow for the inclusion of music and virtual reality as qualified production companies; to define a "historic location," and to increase the current cap of the incentive.

Relating to athletic trainers; to create the Athletic Trainer Secondary School Incentive Program; to provide grants to local boards of education that meet certain requirements related to the use of athletic trainers in rural, 1A, 2A, 3A, and Title I secondary schools; to authorize the Alabama Board of Athletic Trainers to adopt rules to administer the incentive program and the grant application process; to require grants issued from the incentive program to be provided as stipends to qualifying athletic trainers; and to limit each secondary school and athletic trainer to one grant per school year.

Relating to the Alabama Accountability Act of 2013; to amend Sections 16-6D-3, 16-6D-4, 16-6D-6, 16-6D-8, and 16-6D-9, Code of Alabama 1975; to change the terms failing school and nonfailing school to priority school and qualifying school, respectively; to revise and add definitions; to expand scholarships for eligible students attending nonfailing or qualifying schools; to revise the poverty threshold for determining the qualifications of an eligible student; to provide for the qualifying expenses of eligible students with unique needs; to revise the method of determining the amount of educational scholarship awards; to increase the maximum cumulative amount of tax credits that may be issued each year; to require a scholarship granting organization to maintain a reserve balance and to verify the qualifications of an eligible student with unique needs; and to authorize the Department of Revenue to bar qualifying schools or educational service providers from participating in the program under certain circumstances.

Tax credits, adoption, expands eligibility and increases amount of tax credit for adoption, Secs. 40-18-360, 40-18-361 am'd.

Relating to education; to establish the K-12 Capital Grant Program within the Office of the Lieutenant Governor to provide grants to local schools to assist with capital project, deferred maintenance, or technology needs; to provide the purposes for which grant funds can be used; to establish the process for grant applications and approvals; to establish the K-12 Capital Grant Program Fund in the State Treasury; and to provide an effective date.

Talladega College. appropriation

Retirement Systems of Alabama; to provide a benefit increase for certain retirees of the ERS and the TRS

Public education employees, including K-12, postsecondary education, and AIDB, salary increase

Taxation, income tax, exclusion of enhanced federal child tax credits from American Rescue Plan Act from calculation of federal income tax deduction for tax year 2021, extension of the due date for certain taxpayers, Secs. 40-16-3.1, 40-18-39.2 added.

Sales taxes, motor vehicles, drive out exclusion if requested in another state, to include travel trailers or housecars, proof or out-of-state residency, Sec. 40-23-2 am'd.

Literacy Act, definitions further provided, membership and duties of the Literacy Task Force, duties and functioning of the Alabama Committee on Grade Level Reading, Secs. 16-6G-2 to 16-6G-5, inclusive, am'd.

Taxation, sales tax exemptions, sales and use tax exemption provided for certain purchases of diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products