MONTGOMERY – A bipartisan, joint legislative panel has recommended the state reauthorize economic development incentive programs before they expire next year.
The Joint Legislative Study Commission on Renewing Economic Development Incentives held its final meeting today at the Alabama State House. It will submit its report on the Alabama Jobs Act and the Growing Alabama Act to the governor and Legislature.
Lt. Gov. Will Ainsworth, who chairs the commission, said the panel’s findings will be a roadmap for the Legislature on how Alabama can best leverage incentive programs to boost the state’s economy.
“Our goal is simple – we want to have the best incentives not only in the Southeast, but in the nation as a whole,” Ainsworth said. “This commission has been diligent in comparing our existing incentives with other states and working with the Department of Commerce to determine how we can expand both new and existing industries.
“Reauthorizing these programs is going to be essential in attracting high-paying, long-lasting, 21st century jobs.”
The commission, established by the Alabama Legislature in the 2022 legislative session, includes representation from businesses and industry and is responsible for reviewing existing economic incentives and making recommendations to the Governor and Legislature on those incentives ahead of the 2023 legislative session.
Rep. Nathaniel Ledbetter (R-Rainsville) agreed with Ainsworth, calling incentives “tools … to bring (jobs) here and keep them here.”
“Reauthorizing these incentives is going to help Alabamians by allowing us to compete for the best jobs in the country right here in our state,” he said. “Industries across the country are trying to come here because of our great employees, our low taxes and because of our great quality of life. We want to make sure that, from a competition standpoint, we have the tools needed to bring them here and keep them here.”
Discussions with the Alabama Department of Commerce, industry professionals, and data produced from the Economic Development Partnership of Alabama demonstrate that the Alabama Jobs Act and Growing Alabama Act are pivotal tools used by the state’s economic development professionals in successfully attracting businesses to the state.
Senate President Pro Tempore Greg Reed (R-Jasper) said for Alabama to be able to compete with neighboring states, economic development incentives need to be reauthorized and expanded.
“When you look at the top issues Alabamians care about, economic development and job creation are right at the top of that list,” he said. “States around our region are all competing with each other to attract jobs and to create economic growth, and we need to make sure that we win those competitions so good-quality jobs will come to our state and our communities.
“Alabama is the greatest state in the nation to live and work, and these incentives will play a key role in keeping it that way.”
Senate Minority Leader Bobby Singleton echoed Reed’s thoughts.
“Growing Alabama’s economy and creating good jobs for our citizens is something we can all agree on,” he said. “This commission has been thorough in studying existing incentives and exploring how they can be improved and further deployed to really capture their full potential.
“I thank this commission for its diligent work and look forward to seeing the impact its findings will have on communities across our state.”
The Commission was tasked with these key objectives:
- Study the economic impact of each of the following:
- The Alabama Jobs Act (jobs income tax credit and investment income tax credit)
- The Growing Alabama Act (tax credit for contributions to economic development organizations);
- Other economic development incentives that are “not actively being used, are ineffective in their current use, or are otherwise identified” by the Commission.
- Perform a cost-benefit analysis of each of these incentives’ impact on the state’s Education Trust Fund Budget.
- Recommend whether to reauthorize and (if needed) to amend the Alabama Jobs Act and the Growing Alabama Act.
- Recommend whether to repeal, amend, or consolidate any other incentives.
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