BUSINESS & ECONOMIC DEVELOPMENT
- Workforce Development Package: A major priority was bridging the gap between industry and the classroom. Two pieces of legislation address instructor shortages, align education with workforce needs, and support Alabama’s long‑term economic development goals.
- TRAIN (Talent Readiness and Industry Needs) Act: Allows companies to loan experienced employees to teach career-technical education (CTE) courses, establishes a Workforce Teaching Certificate for qualified individuals and provides tax credits for these donations.
- Expedited Certification: Creates an expedited certification pathway for experienced CTE teachers relocating to Alabama to address instructor shortages.
- Powering Growth Package: Aimed at boosting energy security and economic competitiveness, streamlines permitting for electric transmission projects and creates an Energy Infrastructure Bank to finance projects that drive industrial growth.
- Industrial Development Boards: Grants industrial development boards in mid-sized municipalities expanded powers to issue bonds and manage development properties.
- Childcare Tax Credits: Provides childcare tax credits for employers (up to $600,000 annually) and grants for nonprofit childcare providers to support working families.
EDUCATION
- Budget Increases: The Education Trust Fund reached a record $12.4 billion, including a 2% pay raise for educators and funding for the AL CHOOSE Act (Creating Hope and Opportunity for our Students Education) savings accounts.
MILITARY & VETERANS
- Teacher Certification: Creates a temporary teaching certificate for military veterans to help fill the teacher shortage.
- Recruitment Support: Requires high schools to designate a day for the ASVAB (a mandatory, multiple-aptitude test used by the U.S. military to determine enlistment eligibility and job placement) test for students interested in military service.
- Tax Exemptions: Exempts the first $5,000 of inactive duty training income from state income tax for National Guard members.
TOURISM
- Grants and Infrastructure: Creates a grant program for boosting state tourism economies affected by global trade disruptions and foreign travel slowdowns; creates a competitive grant program to fund tourism-related infrastructure projects; creates international and domestic marketing campaigns; establishes the Tourism Sector Economic Monitoring.
BUSINESS & INDUSTRY
- Utility Reform: Expands the Public Service Commission (PSC) from three to seven members and freezes base electric rates until 2029 to provide cost stability for businesses.
- Data Privacy: Requires businesses that collect consumer information to update website disclosures and vendor contracts by May 1, 2027.
- Small Business Support: Allows businesses to round cash transactions to the nearest five cents and ensure credit card processing fees are excluded from sales tax calculations.
- Tax Relief: State income tax deduction of up to $1,000 for qualified overtime pay effective through 2028.
ECONOMIC DEVELOPMENT & TOURISM
- Small Craft Spirits: Creates new license categories for small wineries and distilleries, allowing facility tours to boost local tourism.
- Procurement Exemptions: Exempts the Alabama Industrial Development Training (AIDT) Institute from certain state procurement laws, streamlining its ability to support industry training.
- Grocery Tax Holiday: A state sales tax holiday on groceries approved for May and June 2026.
PUBLIC SAFETY
- School Safety: Tougher felony penalties were established for making hoax threats against schools or hospitals.
- Law Enforcement Support: A new scholarship program created for dependents of law enforcement officers.
- Stricter Penalties: Increased penalties for fleeing from police and discharging firearms into school buildings.
MILITARY
- Spousal Preference: Provides hiring preference points for spouses of active-duty military members applying for state, local, and private sector jobs.
- National Guard Benefits: Expanded the National Guard Educational Assistance Program to include workforce training programs.
TAX SAVINGS FOR SMALL BUSINESSES
- Businesses are no longer required to pay state sales tax on the portion of a transaction dedicated to credit card processing fees.
- For tax years 2026–2028, Alabamians can subtract up to $1,000 of qualified overtime pay from their taxable income, a move intended to incentivize labor participation.
REGULATORY AND WORKFORCE IMPACTS
- Compliance Costs: The Alabama Personal Data Protection Act requires businesses processing the data of more than 25,000 residents to implement new data security and transparency measures. It’s central enforcement by the Attorney General (rather than individual lawsuits) is designed to minimize litigation risks.
- Workforce Pipeline: The creation of the K-12 Accountability Council mandates annual "return on investment" studies for the education system. Tracking metrics like industry-recognized credentials and employment in high-demand sectors, the state aims to better align student outcomes with business needs.
The legislature will reconvene in early 2027 for an organizational session as they enter a new legislative quadrennium.
