Alabama Amended TIF Legislation to Attract Major 21st Century Manufacturing Companies

On March 6th, 2013, Alabama Governor Robert Bentley signed into law the Major 21st Century Manufacturing Zone Act (SB 96).  The law provides local government with authority to use TIF to attract industries with a public interest.

SB 96 authorizes local governments to create manufacturing zones of at least 250 acres which are suitable sites for manufacturing facilities for targeted industries such as automotive, aviation, medical, pharmaceutical, computer, electronics and energy conservation industries.  In addition, an anticipated aggregate capital expenditure by manufacturers in the zone of at lease $100 million is required for the creation of a manufacturing zone.

To provide TIF in a manufacturing zone, not less than 50% of the TIF district area created must be designated as a manufacturing zone. The term of the TIF district is up to 35 years.

To attract manufacturing companies, SB 96 allows local governments to expand the use of TIF funds to apply TIF revenues for private improvements as well as public works within manufacturing zones. Eligible private improvements include the construction of privately owned manufacturing facilities, equipment, redevelopment, rehabilitation and conservation.

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