Earlier this week, Gov. Kay Ivey revealed more details of her economic incentive “Game Plan,” specifying the actions she wants the legislature to take this spring.
Ivey’s plan includes four bills. Though none have been introduced yet in the legislature, her office detailed them in a press release on Monday. These include:
Enhancing Alabama’s Economic Progress Act: This would renew the Alabama Jobs Act (AJA) and the Growing Alabama program. Passed in 2015, the AJA is set to expire in July. Renewing the AJA would continue tax credits and abatements to qualifying businesses in Alabama. The GAC offers tax credits to individuals in Alabama who make cash contributions to “approved qualifying projects” at “economic development organizations.” In the press release, Ivey’s office urged the Legislature to extend the sunset of the two laws to 2028 while “adding strategic enhancements to increase their effectiveness.”
Site Evaluation and Economic Development Strategy (SEEDS): If passed, the SEEDS Act will permit the State Industrial Development Authority (SIDA) to “accelerate the development of industry-ready sites.” SIDA is authorized to sell bonds to make grants to cities, counties and other local industrial development authorities to fund the development of industrial sites.
Innovations and Small Business Act: According to the press release, this will support “underrepresented businesses” in rural parts of the state, though it’s unclear how.
Enhancing Transparency Act: This will amend the AJA to require the ALC to publish information about projects receiving economic incentives on its website.
Ivey’s push to expand special tax privileges and government funds to specific corporations in the state is also backed by Alabama Senate President Pro Temp Greg Reed (R-Jasper), Speaker of the Alabama House of Representatives Nathaniel Ledbetter (R-Rainsville), Alabama Senate Minority Leader Bobby Singleton (D-Greensboro), Alabama House Minority Leader Anthony Daniels (D-Huntsville), Lt. Gov. Will Ainsworth and the Alabama Department of Commerce (ALC) Secretary Greg Canfield.
The Bussiness Council of Alabama (BCA) already endorsed the plan in March.
Last week, leaked emails from trustees at Troy University expressed concern about research findings critical of economic incentive programs discussed at an event hosted by Troy’s Johnson Center for Political Economy earlier this year.
In the emails, Troy chancellor Jack Hawkins suggested scheduling a meeting to discuss how the trustees could vet the topics the Johnson Center gets to discuss. Troy trustee and Alabama State Bar president Gibson Vance expressed concern about pressure from Alabama Power and the BCA.
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