Ala. Senate approves tax credit to help poor areas
MONTGOMERY, Ala. (AP) — The Alabama Senate has approved legislation that gives state tax credits for investing in businesses in low-income areas.
The Senate voted 31-0 Tuesday night for a bill that piggy backs on federal legislation that uses tax breaks to spur investment in poor neighborhoods. The bill provides companies with an 8.3 percent tax credit per year for their investments for up to six years until the credits equal 50 percent of the investment.
The House passed a different version of the bill in March. The House and Senate will have to agree on a version of the bill for it to become law.
Legislative fiscal experts said the tax breaks could reduce the state's tax collections by up to $20 million annually.