Alabama HB399: Tax abatements for data processing centers, exemption period limited, collection of certain taxes on purchases required, sunset date extended

What the bill says

An Act, Relating to tax abatements and economic development; to amend Sections 40-9B-3, 40-9B-4, and 40-9B-4.1, Code of Alabama 1975, relating to tax abatements for data processing centers; and to amend Section 40-23-35, Code of Alabama 1975, relating to the distribution of sales taxes; to limit the maximum exemption period for abatements available to data processing centers to 20 years beginning January 1, 2027…

From the enrolled text:

An Act, Relating to tax abatements and economic development; to amend Sections 40-9B-3, 40-9B-4, and 40-9B-4.1, Code of Alabama 1975, relating to tax abatements for data processing centers; and to amend Section 40-23-35, Code of Alabama 1975, relating to the distribution of sales taxes; to limit the maximum exemption period for abatements available to data processing centers to 20 years beginning January 1, 2027; to provide for the collection of the state noneducational ad valorem taxes and sales and use tax levied pursuant to Chapter 23 of this title on purchases of building materials, building fixtures, structural components, real property improvements, power infrastructure for transformation, distribution, or management of electricity, backup power generation systems, and battery systems made by certain large data processing centers beginning January 1, 2027; to extend the sunset date applicable to abatements for data processing centers; and to make nonsubstantive, technical revisions to update existing code language to current style. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 40-9B-3, 40-9B-4, and 40-9B-4.1, Code of Alabama 1975, are amended to read as follows: "§40-9B-3 (a) For purposes of this chapter, the following words and phrases mean: (1) ABATE, ABATEMENT. A reduction or elimination of a Page (1) ABATE, ABATEMENT. A reduction or elimination of a HB399 Enrolled taxpayer's liability for tax or payments required …

Read the full official text

Sponsors

• Hulsey, Leigh (R, HD-015) · primary sponsor
• Rafferty, Neil (D, HD-054)
• Tillman, Ontario (D, HD-056)
• Mooney, Arnold (R, HD-043)
• DuBose, Susan (R, HD-045)
• Carns, Jim (R, HD-048)
• Robertson, Chad (R, HD-040)
• Hammett, Matthew (R, HD-092)
• Crow, Norman (R, HD-063)
• Stringer, Shane (R, HD-102)
• Brinyark, Bryan (R, HD-016)
• Kirkland, Mike (R, HD-023)

Latest actions

1. April 17, 2026: Enacted
2. April 9, 2026: Delivered to Governor
3. April 9, 2026: Signature Requested
4. April 9, 2026: Enrolled
5. April 9, 2026: Ready to Enroll
6. April 9, 2026: Hulsey Motion to Concur In and Adopt Senate Amendment - Adopted Roll Call 1357
7. April 9, 2026: Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1315
8. April 9, 2026: Jones motion to Adopt - Adopted Roll Call 1314
9. April 9, 2026: Jones 1st Amendment Offered
10. April 9, 2026: Jones motion to Table - Adopted Voice Vote

Votes

• Senate Roll Call #1315 (April 9, 2026): 32 yea, 0 nay, passed
• Senate Roll Call #1314 (April 9, 2026): 31 yea, 0 nay, passed
• House Roll Call #1357 (April 9, 2026): 102 yea, 0 nay, passed
• House Roll Call #832 (March 10, 2026): 103 yea, 0 nay, passed
• House Roll Call #831 (March 10, 2026): 104 yea, 0 nay, passed
• House Roll Call #830 (March 10, 2026): 102 yea, 0 nay, passed

Common questions

What is HB399?

HB399 is a bill in the Alabama Legislature (2026 Regular Session): Tax abatements for data processing centers, exemption period limited, collection of certain taxes on purchases required, sunset date extended.

What does HB399 do?

In its own words: An Act, Relating to tax abatements and economic development; to amend Sections 40-9B-3, 40-9B-4, and 40-9B-4.1, Code of Alabama 1975, relating to tax abatements for data processing centers; and to amend Section 40-23-35, Code of Alabama 1975, relating to the distribution of sales taxes; to limit the maximum exemption period for abatements available to data processing centers to 20 years beginning January 1, 2027…

What is the status of HB399?

Signed into law as of April 17, 2026. Latest action: Enacted (April 17, 2026).

Who sponsored HB399?

Hulsey, Leigh (R, HD-015), with 11 co-sponsors.

Where is the official record for HB399?

On the Alabama Legislature website: https://alison.legislature.state.al.us/instrument/2026RS/HB399