Scope
Alabama Act 2026-573 (HB 399, 2026 Regular Session) amends Code of Alabama sections 40-9B-3, 40-9B-4, 40-9B-4.1 and 40-23-35. For abatements granted on or after 1 January 2027, it limits the abatement period for a data processing center to 20 years, with a possible additional 10 years under a binding agreement. For a data processing center with total peak demand of 100 megawatts or more, abatement of state noneducational property taxes and most state construction-related sales and use taxes ends when the property is placed in service. The act also extends the Chapter 9B application sunset from 31 July 2028 to 31 July 2032.
- Geographic scope
- Alabama
- Jurisdiction
- State
- Authority type
- Legislature
- Issuing authority
- Alabama Legislature
Dates
- Adopted
- 16 April 2026
- Effective
- 1 June 2026
- Scheduled expiration
- See completion condition
- Ended
- Not recorded as ended
- Completion condition
- The act states no expiration. Its data-center limits apply to abatements granted on or after 1 January 2027; that is an application date, not an end date.
- Source document
- The source page states no document date
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
Alabama Act 2026-573 amends the Chapter 9B tax abatement law for data processing centers. For abatements granted on or after 1 January 2027, it caps the abatement period at 20 years, with up to 10 more years under a binding agreement, and for centers of 100 megawatts or more it stops abatement of state noneducational property taxes and most state construction sales taxes at the placed-in-service date, while computing and cooling equipment can still be abated. The Governor approved the act on 16 April 2026 and it took effect on 1 June 2026. It does not end the abatement program; it extends the application sunset to 31 July 2032.
What this does not establish
- The approval date, 16 April 2026, was read from the signed page image of the act. The enrolled bill text carries printed line numbers.
- 1 January 2027 is when the new limits start to apply to newly granted abatements. It is not an expiration date.
- Local abating authorities, not the state, grant individual abatements. The underlying Chapter 9B program is not part of this record.
- The Governor's targeted-county abatement authority and the 10-year grandfathering of earlier projects are summarized, not restated in full.
Unresolved questions
- Which data processing centers will be affected by the 100-megawatt limit was not counted.
Relationships
Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.
- Related, not a replacement Chapter 9B tax abatements for data processing centers (In effect)
Sources
https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/HB399-enr.pdf
- Signed Act 2026-573 (Alabama Department of Revenue copy) signed act showing the Governor's 16 April 2026 approval · 16 April 2026