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Alabama HB 346 revokes economic development tax incentives and mandates state reimbursement for companies violating human trafficking or child labor laws

Original title: Tax incentives; reimbursement for violation of labor and trafficking laws provided for

Last action · January 29, 2026: Pending Committee Action in House of OriginSponsor: Neil Rafferty

Introduced
Committee
Floor Vote
Passed
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What This Bill Would Do

This bill prohibits entities that violate human trafficking or federal child labor laws from receiving economic tax incentives under the Alabama Jobs Act and requires them to reimburse state and local governments for any incentives already received. The legislation amends existing code to require the Secretary of Commerce to verify compliance with these labor and trafficking laws before an entity can qualify for tax incentives. The act is set to become effective on June 1, 2026.

Why it matters

Companies found liable for labor or trafficking violations face severe financial consequences, including the clawback of s, grants, or refunds, shifting the fiscal accountability of economic development programs.

Background
  • The Alabama Jobs Act provides economic development incentives, including tax abatements and grants, to qualifying companies expanding or locating within the state. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

incentivized companies

Companies receiving economic development incentives must comply with human trafficking and child labor laws or face mandatory reimbursement of received tax benefits.

Directly affected

Secretary of Commerce

Must conduct additional background verification regarding labor and human trafficking laws for companies applying for tax incentives.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What happens if an incentivized company violates child labor laws?
The entity must reimburse state and local governments for the cost of any economic development incentives received, and the project agreement's provisions will be enforced.
Who is responsible for verifying compliance with human trafficking laws?
The Secretary of Commerce must verify that the company, its subsidiaries, and its suppliers do not engage in acts violating human trafficking or child labor laws before a company can be approved for tax incentives.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

2 actions
  1. Jan 29, 2026HouseCommittee
    Pending Committee Action in House of Origin
  2. Jan 29, 2026HouseIntroduced
    Read for the first time and referred to the House Committee on State Government

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Conditional Economic Development

Shifts economic development policy from simple project qualification to ongoing ethical and legal compliance regarding labor standards.

Connected Entities

Secretary of Commerce, Governor, Neil Rafferty
OrganizationSecretary of Commerce“Required to verify compliance with human trafficking and child labor laws for ta”Map →
PersonGovernor“Determines whether a company meets criteria for an approved company and executes”Map →
PersonNeil Rafferty“Representative who sponsored HB 346”Map →

Sources

Open source document

alison.legislature.state.al.us

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy25
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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