First Jobs Bills Clear House, More in Line for Votes Next Week

Alabama House Speaker Mike Hubbard Yellow Hammer Politics — House Speaker Mike Hubbard (R-Auburn)

MONTGOMERY – As promised, job growth legislation was the top priority in the first week of the Alabama Legislature’s 2012 Regular Session, as bills aimed at boosting job creation passed the House of Representatives on Thursday.

“As much progress as Alabama has made reducing unemployment faster than any other state and adding 41,000 jobs since last year, too many people are still without work in this tough economy,” House Speaker Mike Hubbard said. “That’s why our number one focus is boosting private sector job growth and getting more Alabamians back to work. We have legislation designed to help existing businesses grow and hire more workers, and give our state more tools to recruit new jobs.”

Three bills authorizing incentives targeting industries with great potential for growth in Alabama received House passage Thursday and will now go to the Senate for its consideration. These are:

The Alabama Data Processing Center Economic Incentive Enhancement Act, House Bill 154 sponsored by Rep. Dan Williams (R-Athens), passed by a vote of 72 yeas, 18 nays and 2 abstentions.

Data processing centers are key components of the 21st century economy. These centers employ a skilled workforce, provide high-paying jobs, and have a low environmental footprint. Alabama is uniquely positioned to compete for jobs in this growing industry.
This proposal would expand the scope of certain tax incentives in order to focus on recruiting more data processing centers to Alabama.

Aviation and Aerospace Economic Incentives, House Bill 39 sponsored by Rep. Paul Lee (R-Dothan), passed by a vote of 80 yeas, 8 nays and 4 abstentions.

This bill would provide for a special tax incentive allowing Alabama to target aircraft manufactures and aircraft parts manufactures.

Enhanced Incentives to Recruit Job-Creating Coal Mining Projects, House Bill 144, by Rep. Bill Roberts (R-Jasper), passed by a vote of 80 yeas and 3 nays

This bill enhances the state’s ability to recruit coal mining companies by allowing them to qualify for certain existing tax incentives currently available to manufacturers and other businesses.

More jobs bills will be on the agenda when lawmakers reconvene on Tuesday. Those include:

The “Heroes for Hire” Tax Credit Act, House Bill 152, sponsored by Rep. DuWayne Bridges (R-Valley), passed unanimously out of the Education Ways and Means Committee on Wednesday.

With wars winding down in Iraq and Afghanistan, thousands of Alabama veterans will soon return home to a difficult economy in which it is hard to find a job.
This proposal would offer Alabama businesses a $2000 tax credit for hiring a veteran recently returned from war.

The Alabama Job Creation and Retention Act, House Bills 159 & 160 Sponsored by Rep. Barry Mask (R-Wetumpka), passed out of the Economic Development and Tourism Committee on Wednesday.

Alabama’s success in landing world-class companies like Mercedes, Honda, Hyundai and ThyssenKrupp proves how effective tax incentives can be for bringing jobs to this state.
This constitutional amendment (HB 159) would allow voters to give the Governor and the Alabama Development Office more flexibility in offering tax incentives to land major economic development projects and retain companies that might otherwise relocate outside Alabama without having to call a special session of the Legislature.
The corresponding enabling bill (HB160) sets strict parameters for how incentives can be used to ensure return on investment.