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HB 28

Colquitt County; ad valorem tax for county purposes; provide homestead exemption

2025-2026 Regular Session Introduced by Chas Cannon

HB 28 offers Alabama restaurants a tax credit for recycling oyster shells, promoting environmental health and supporting local water quality from 2026 to 2030.

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Bill Summary · HB 28

Summary of HB 28: Taxation; Establishing an Income Tax Credit for Oyster Shell Recycling

Bill Overview

Bill Number: HB 28
Title: Taxation; to establish an income tax credit for oyster shell recycling
Introduced: August 11, 2025
Status: Read for the first time and referred to the House Committee on Ways and Means Education
Effective Date: June 1, 2026
Expiration Date for Credit Claims: Tax years 2026 to 2030

Purpose and Intent

The primary aim of HB 28 is to promote environmental sustainability by encouraging restaurants in Alabama to recycle oyster shells. The bill seeks to establish a state income tax credit for restaurants that participate in approved oyster shell recycling programs. This initiative is designed to enhance local water quality, support aquatic habitats, and protect the state's coastline.

Key Provisions

  • Tax Credit Eligibility:

    • Restaurants that donate oyster shell material to designated recycling programs can claim a tax credit.
    • The credit amount is the lesser of:
    • $1 for every 50 pounds of oyster shell material donated during the tax year, or
    • A maximum of $2,000.

  • Credit Cap:

    • The total amount of credits granted is limited to $100,000 per calendar year.
    • Credits will be allocated on a first-come, first-served basis.

  • Excess Credit Refunds:

    • If the credit exceeds the taxpayer's liability, the excess will be treated as an overpayment and refunded.

  • Record Keeping:

    • Taxpayers must maintain records to verify eligibility and the amount claimed.

  • Claiming the Credit:

    • Corporations, individuals, and other entities can claim the credit on their respective tax returns.
    • Specific provisions are outlined for how partnerships and non-corporate entities should claim their share of the credit.

  • Implementation Rules:

    • The Alabama Department of Revenue will adopt rules to implement the provisions and collaborate with the Department of Conservation and Natural Resources.

Impact

  • Beneficiaries:

    • Primarily affects restaurants that engage in oyster shell recycling.
    • Contributes to environmental conservation efforts in Alabama.

  • Financial Implications:

    • Provides a financial incentive for restaurants to recycle, potentially leading to improved local ecosystems and water quality.

Procedural Aspects

  • The bill was filed on August 11, 2025, and is currently pending committee action in the House of Origin (Ways and Means Education) as of January 13, 2026.

This summary provides a clear understanding of HB 28, outlining its purpose, key provisions, and potential impacts on both the environment and the restaurant industry in Alabama.

Compiled from official sources — confirm details with the bill’s official record.

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