SB330INTRODUCED
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SB330
FXV455C-1
By Senators Orr, Allen, Roberts
RFD: Transportation and Energy
First Read: 18-Apr-24
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5 FXV455C-1 04/11/2024 JRF (F)JRF 2024-1408
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First Read: 18-Apr-24
SYNOPSIS:
Under existing law, the Alabama Jobs Act
provides incentives for certain qualifying business
activities to stimulate job creation and capital
investment for new and existing businesses within
Alabama.
This bill would amend the definition of a
"renewable energy generation facility" which is an
activity eligible for incentives under the Alabama Jobs
Act.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Alabama Jobs Act; to amend Section
40-18-372, Code of Alabama 1975, to amend the definition of a
renewable energy generation facility.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-372, Code of Alabama 1975, is
amended to read as follows:
"§40-18-372
A qualifying project must be found by the Secretary of
Commerce to conduct an activity specified in subdivision (1)
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Commerce to conduct an activity specified in subdivision (1)
and to meet the minimum standard set forth in subdivision (2).
(1) A qualifying project must predominantly conduct an
activity that is any one or more of the following:
a. Described by NAICS Code 1133, 115111, 2121, 22111,
221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862,
48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511,
5121 (other than 51213), 51221, 517, 518 (without regard to
the premise that data processing and related services be
performed in conjunction with a third party), 51913, 52232,
54133 (if predominantly in furtherance of another activity
described in this article), 54134 (if predominantly in
furtherance of another activity described in this article),
54138, 5415, 541614, 5417, 55 (if not for the production of
electricity), 561422 (other than establishments that originate
telephone calls), 562213, 56291, 56292, 611512, 927, or 92811.
b. The production of biofuel as such term is defined in
Section 2-2-90(c)(2).
c. A renewable energy generation facility may be one of
the following:
1. A facility that is owned by one or more electric
providers, as the term is defined in Section 37-16-3, for
providing electric service at retail in Alabama .
2. A "qualifying facility" (QF) as defined by the
Energy Information Administration (EIA) as a cogeneration or
small power production facility that meets certain ownership,
operating, and efficiency criteria established by the Federal
Energy Regulatory Commission (FERC) pursuant to the Public
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Energy Regulatory Commission (FERC) pursuant to the Public
Utility Regulatory Policies Act (PURPA).
3. An "independent power producer" as defined by EIA as
a corporation, person, agency, authority, or other legal
entity or instrumentality that owns or operates facilities for
the generation of electricity for use primarily by the public .
For purposes of this subdivision, an "electric
provider" shall also include an authority as defined in
Section 11-50A-1. In the case of an electric provider that is
also a tax-exempt organization under the Internal Revenue
Code, notwithstanding Section 40-18-376(b)(3), any investment
credit may be transferred for the entire term of the project
agreement, as approved by the Governor. A "renewable energy
generation facility" as used in this subdivision shall include
any tangible property that is part of renewable energy
generation, including any addition, modification, expansion,
or upgrade to transmission or distribution systems that is
required to accommodate the interconnection of renewable
energy generation.
d. The conduct of original investigations undertaken on
a systematic basis to gain new knowledge or the application of
research findings or other scientific knowledge to create new
or significantly improved products or processes.
e. The national or regional headquarters for a company
that conducts significant business operations outside the
state and that will serve as the principal office of the
company'’s principal operating officer with chief
responsibility for the daily business operations of the
company.
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company.
f. A target of the state '’s economic development
efforts pursuant to the Accelerate Alabama Strategic Economic
Development Plan adopted in January 2012 by the Alabama
Economic Development Alliance, created by Executive Order
Number 21 of the Governor on July 18, 2011, or any amended
version or successor document thereto.
g. A type listed in a rule adopted by the Department of
Commerce, other than an emergency rule.
Notwithstanding the foregoing, a qualifying project may
not engage predominantly in farming activities involving
trees, animals, or crops, and a qualifying project may not
engage predominantly in the retail sale of tangible personal
property or services, and may not be a shopping center,
restaurant, movie theater, bowling alley, fitness center,
miniature golf course, nightclub, gaming facility, or
establishment serving the local community. However, if the
excluded activities are not the predominant activity at the
project, and if the project is otherwise a qualifying project,
then the project agreement may provide that the capital
investment may include costs related to excluded activities
that are ancillary to the primary business conducted as part
of the project. This provision shall not be deemed to exclude
customer service centers, call centers or headquarters
otherwise allowed by this subdivision.
(2) A qualifying project shall create a significant
number of new jobs for the area in which the qualifying
project shall be located. Absent a finding of extraordinary
circumstances by the Secretary of Commerce, a qualifying
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circumstances by the Secretary of Commerce, a qualifying
project shall employ either of the following number of new
employees:
a. Any number of new employees, for a qualifying
project in which the predominant activity involves chemical
manufacturing, data centers, renewable energy generation,
engineering, design, or research, metal/machining technology
or toolmaking; or
b. At least 50 new employees, for all other qualifying
projects."
Section 2. This act shall become effective on October
1, 2024.
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