As used in this article, the following terms shall have the following meanings:
(1) BASE WAGE REQUIREMENT. An average hourly wage, inclusive of all employees in Alabama, of not less than an amount equal to the annualized median individual income for the state (indexed annually in accordance with the manner provided in Section 25-5-68) as determined by the United States Bureau of the Census performed decennially, excluding benefits.
(2) CAPITAL COSTS. The same meaning as in Section 40-18-190.
(3) DEPARTMENT. The Alabama Department of Revenue.
(4) FULL TIME OPERATIONS. The operations of the qualifying project at which the investing company has reached the minimum employment level for the qualifying project.
(5) INDUSTRIAL, WAREHOUSING, OR RESEARCH ACTIVITY. Any trade or business described in the 2007 North American Industry Classification System, promulgated by the Executive Office of the President of the United States, Office of Management and Budget, Sectors 31 (other than National Industry 311811), 32, and 33; Subsectors 423, 424, 511, and 927; Industry Groups 5417, 5415, and 5182 (without regard to the premise that data processing and related services be performed in conjunction with a third-party); Industries 11331 and 48691; and National Industries 115111, 517110, 541380, and 561422 (other than establishments that originate telephone calls) and includes such trades and businesses as may be hereafter reclassified in any subsequent publication of the North American Industry Classification System or other industry classification system developed in conjunction with the United States Department of Commerce, or any process or treatment facility which recycles, reclaims, or converts materials, which include solids, liquids, or gases, to a reusable product.
(6) INVESTING COMPANY. Any corporation, partnership, limited liability company, proprietorship, trust, or other business entity, regardless of form, or a related party, making a qualifying investment.
(7) MINIMUM EMPLOYMENT LEVEL. At least 100 new employees in full-time employment with the investing company within the state and which satisfy the base wage requirement.
(8) NEW EMPLOYEES. Those persons who have not been previously employed at the site on which the qualifying project is or will be located or by an investing company or companies in the state; will be employed full-time at the qualifying project; and will be subject to the personal income tax imposed by Section 40-18-2 upon commencement of employment at the qualifying project.
(9) PROJECT. Any land, building, or other improvement, and all real and personal properties deemed necessary or useful in connection therewith, whether or not previously in existence, located or to be located in the state.
(10) QUALIFYING INVESTMENT. The undertaking by one or more investing companies of a qualifying project.
(11) QUALIFYING PROJECT. A project to be sponsored or undertaken by one or more investing companies that shall have a capital cost of not less than one hundred million dollars ($100,000,000), and at which the predominant trade or business activity conducted will constitute industrial, warehousing, or research activity, and which is expected to employ the minimum employment level.
(12) RELATED PARTY. A person or entity that bears a relationship to an investing company described in Section 267(b), (c), or (e) of the Internal Revenue Code of 1986, as amended.
(13) RESEARCH AND DEVELOPMENT FACILITY. An establishment engaged in conducting original investigations undertaken on a systematic basis to gain new knowledge or applying research findings or other scientific knowledge to create new or significantly improved products or processes, or both.
(14) STATE. The State of Alabama.
(15) TARIFF COSTS. All final and preliminary duties imposed upon an Investing Company pursuant to 19 U.S.C. § 1671 through § 1677(n) during the term of a Qualified Project, including but not limited to cash deposits based upon estimated duties, bonds, or other security based upon estimated rates as outlined in 19 U.S.C. § 1671b(d), for products to be produced by a qualifying project.
(16) TARIFF CREDIT. A discretionary credit up to the total amount of an investing company's tariff costs during the term of a qualifying project, not to exceed twenty million dollars ($20,000,000) or 25 percent of the capital costs of the qualifying project, whichever is less. The total tariff credit allowed to any taxpayer is limited to fifty million dollars ($50,000,000). The tariff credit may be applied against the investing company's state income tax liability or transferred to a transferee taxpayer to be credited or allowed against the transferee taxpayer's state income tax or financial institution excise tax liability for up to three years from the date of a Notice of Tariff Credit provided pursuant to this article; provided, however, that there shall be no credit of any portion of the financial institution excise tax liability due to be distributed to a county pursuant to Section 40-16-6.
(17) TAX YEAR. The applicable taxable year as the term is defined in Section 40-18-1.
(18) TERM. The period of time between the date that a notice of intent is filed pursuant to Section 40-18-207 and the date of full-time operations of the Qualifying Project, not to exceed 24 months.
(19) TRANSFEREE TAXPAYER. A person or entity to which a tariff credit is transferred from an investing company. A transferee taxpayer that receives the tariff credit transfer shall not be allowed to transfer the credit.
(Act 2011-648, p. 1651, §2.)