Alabama Governor Signs Legislation Aimed at Recruiting Knowledge-based Jobs

Gov. Bob Riley signed a bill last month extending tax credits and incentives to knowledge-based industries and green employers to encourage growth and expansion in these fields throughout the state.

Touted by the governor's office as a recruitment tool to influence the location decision for thousands of new jobs, the bill extends capital credits and tax abatements currently offered to new and expanding manufacturers to corporate headquarters, R&D facilities, and producers of electricity or natural gas from biomass or renewable energy resources, cellulosic biofuel producers, and other green employers. The bill also extends Alabama's 20-year credit period existing under the corporate income tax Capital Credit program to 30 years and updates the base wage requirement to $15 per hour.

Outlined during his state of the state address earlier this year, the measure is a critical component of the governor's Alabama Economic Recovery Plan to increase the state's competitiveness and emerge as a leader in the green economy (see the Feb. 4, 2009 issue of the Digest).

The full text of HB 568 is available at: http://www.legislature.state.al.us/.

Gov. Riley also signed the $6.2 billion education budget (SB 570) last month, providing $29 million for the Alabama Math, Science and Technology Initiative (AMSTI). Last session, lawmakers increased funding for the initiative by $5 million for a total $40.8 million. Nationally recognized for raising achievement scores and improving student interest in math and science, AMSTI was created by the legislature in 2002 and received a significant boost in funding for FY08 (see the June 13, 2007 issue of the Digest). The program provides professional development, equipment and materials, and on-site support to improve math and science teaching in the K-12 system.