The Alabama Senate voted in favor of two bills on Thursday that, if passed, will expand special privileges and tax abatements for specific corporations in the state but also impose transparency requirements on certain economic incentives.
On Monday, Alabama Gov. Kay Ivey revealed more details of her economic incentive “Game Plan,” specifying the actions she wants the Legislature to take this spring.
Everybody else does it, so we have to. Basically, that is what Republican lawmakers have told constituents about the state's use of economic incentives, which they will readily acknowledge in theory, is a gross violation of free market economics.
The Business Council of Alabama announced its new four-year “Renew Alabama” plan last week, promising to continue lobbying the state legislature to keep offering payments and tax credits to select private businesses.
The state legislature will take up reauthorization of the Alabama Jobs Act next session. The reauthorization affords an opportunity to consider economic and ethical questions raised by targeted incentives for businesses.
The Alabama Jobs act has been in the spotlight since proposals to remove the caps on the tax credit incentives provided for corporations who decide to set up shop in the state.