SB36 By Senator Holley RFD Finance and Taxation Education Rd 1 03-MAR-15

SYNOPSIS: This bill would change the Alabama New Markets Development Act to allow the Governor to award via executive order an additional $5 Million to the existing cap of $20 Million and to provide further for the allocation of the tax credits

A BILL TO BE ENTITLED AN ACT

Amending the annual state cap limits to allow the Governor to issue additional credits relating to the Alabama New Markets Development Act and to provide further for the allocation of the tax credits.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Section 41-9-219.2, Code of Alabama 1975, is amended to read as follows:

Ҥ41-9-219.2

Once the department has certified a cumulative amount of qualified equity investments that can result in the utilization of twenty million dollars ($20,000,000) of tax credits in any tax year, the department may not certify any more qualified equity investments under Section 41-9-219.3. This limitation shall be based on the scheduled utilization of tax credits without regard to the potential for taxpayers to carry forward tax credits to later tax years. The Governor may award an additional five million dollars ($5,000,000) of tax credits via an executive order. The additional allocation is only available to Community Development Entities (CDEs) that are based in Alabama. The CDE shall be qualified following the guidelines described in Section 45D of the Internal Revenue Code of 1986 as amended, although not required to have received an allocation from the the Community Development Financial Institutions Fund (CDFI). The application process as described in Section 41-9-219.3 will remain in effect.

Section 2. All laws or parts of laws that conflict with this act are hereby repealed.

Section 3. The provisions of this act are severable. If any part of this act is declared invalid or unconstitutional, that declaration shall not affect the part which remains.