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SB 370

Tax increment districts, Major 21st Century Manufacturing Zone allowed to be located within a tax increment district without regard to size of district and further provides for use of ad valorem tax revenues collected within a district

2026 Regular Session Introduced by Steve Livingston

SB 370 removes size restrictions on tax increment districts for major manufacturing zones in Alabama and expands allowable uses of collected property tax revenues for economic development.

Reported Out of Committee Second House (Economic Development and Tourism)
#economicdevelopment
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WeVote Research Nonpartisan
Bill Summary · SB 370

Legislative bill overview

SB 370 allows Major 21st Century Manufacturing Zones in Alabama to be established within tax increment districts (TIDs) without size restrictions on the district itself. The bill also expands how ad valorem tax revenues collected within these districts can be utilized, removing previous limitations on their application.

Why is this important

Tax increment financing is a key economic development tool where future tax increases from property value growth are redirected to fund infrastructure and development in targeted areas. By eliminating size restrictions and broadening revenue use, this bill could accelerate manufacturing investment in Alabama, but it also determines how public tax dollars are allocated between general services and economic development projects.

Potential points of contention

  • Revenue diversion from public services: Redirecting ad valorem taxes that traditionally fund schools, roads, and public services toward manufacturing zones could reduce funding for essential services in surrounding areas or the state generally.
  • Lack of district size limits: Removing size restrictions may allow disproportionately large TIDs that capture tax growth over wider areas, concentrating benefits to specific industries while spreading costs across larger populations.
  • Transparency and accountability: Expanding "use of ad valorem tax revenues" without specific parameters about allowable uses could create ambiguity about how funds are spent and who benefits from public investment.

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

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