§40-18-195.1. Capital credits and abatements under 2007 North American Classification System Industry Group 2121.

(a) Notwithstanding any other provision of law to the contrary, including Sections 40-18-190(a) and 40-18-195, the capital credit authorized pursuant to Act 2012-54 for any trade or business described in the 2007 North American Industry Classification System Industry Group 2121 shall be modified as follows:

(1) Capital costs shall not include the amounts specified in Section 40-18-190(a) (2)b. and d.

(2) The capital credit shall be an annual amount equal to up to five percent of 100 percent of the capital costs, as modified by subdivision (1) of this subsection, of the qualifying project.

(3) The capital credit shall be reduced or eliminated with respect to a qualifying project at the time the sum of all capital credits applied against the state income tax liability of the investing company, or its shareholders, partners, members, owners, or beneficiaries, equals 50 percent of the capital costs, as modified by subdivision (1) of this subsection, of the qualifying project. It is the intent of the Legislature that the capital credits authorized pursuant to Act 2012-54 shall be credited or allowed against the state income tax liability of the investing company in each of the 20 years commencing with the year during which the qualifying project is placed in service and continuing for 19 consecutive years thereafter, provided that the aggregate amount of capital credits shall not exceed 50 percent of the capital costs, as modified by subdivision (1) of this subsection, of the qualifying project.

(b) Notwithstanding any other provision of law to the contrary, including Section 40-9B-4, abatements of state taxes authorized by Act 2012-54 for any trade or business described in the 2007 North American Industry Classification System Industry Group 2121 shall be limited to 50 percent of the state levied non-educational ad valorem taxes, construction related transaction taxes, and mortgage and recording taxes related to the private use industrial property.

(c) The capital credits and abatements authorized by Act 2012-54 for any trade or business described in the 2007 North American Industry Classification System Industry Group 2121 shall not be available to qualifying projects or private use industrial property after March 1, 2014, unless the Legislature, by joint resolution, votes to continue or reinstate the capital credit and abatements for such projects after that date. No action or inaction on the part of the Legislature shall reduce or suspend the capital credits or abatements described in the immediately preceding sentence in any past or future calendar year with respect to any investing company that files a statement of intent pursuant to Section 40-18-191 or any governing body of a municipality, county, or public industrial authority that grants an abatement for periods on or prior to March 1, 2014, it being the sole intention of this section that failure of the Legislature to adopt a joint resolution continuing the capital credits or abatements for periods after March 1, 2014, shall affect only the availability of the capital credits or abatements to new qualifying projects or new private use industrial property for periods after March 1, 2014, and shall not affect qualifying projects that have established their eligibility to receive capital credits under Section 40-18-191 or private use industrial property that is granted an abatement by the governing body of a municipality, county, or public industrial authority for periods on or prior to March 1, 2014.

(d) The department shall report annually to the Legislature and to the public as to qualifying projects which claim capital credits and abatements as a result of the amendments provided in Act 2012-54. The report shall be due on the fifth legislative day of each regular session and shall state the number of qualifying projects, the capital costs of the qualifying projects, the total amount of capital credits claimed during the year, and the total amount of taxes abated during the year. This report shall be separate from and supplemental to the report required by Section 40-18-196.

(Act 2012-54, p. 76, §§2-4.)