Applications are now open for the first round of an Alabama tax incentive for projects that increase tourism throughout the state. The Sweet Home Alabama Tourism Investment Act1 (“the Act”) was passed in 2023 to provide tax rebates to companies with certain tourism destination projects. Applications have just opened for these rebates in Spring 2025. The rebates, which are available through July 31, 2028, are provided for state and local sales and use tax, lodgings tax, and other transactional taxes but are capped at $1 million per year and up to $5 million per company, over 10 years. Credits can be carried forward for up to five years and can also be transferred to subsequent owners of the project.
Who Is Eligible?
An eligible certified tourism destination project will have a minimum private investment of one of the following:
- $35 million if considered a tourism attraction located within an entertainment district, resort development, tourism destination attraction in a historic district, or a combination of these projects
- Must be open to the public five days per week, serve food and beverages, and provide live entertainment three days per week;
- $50 million if considered a tourism destination attraction; or
- $75 million if considered a mega project.
Eligible tourism destination attractions would include theme parks, water parks, speedways, aquariums, convention centers, professional sports centers, and similar indoor and outdoor attractions.
Timeline
Under the Act, applications for the credit are reviewed and selected by the Alabama Tourism Advisory Board, with rebates administered by the Alabama Department of Revenue.
- Applications will be reviewed on a quarterly basis with submission deadlines as follows: March 31, June 30, September 30, and December 31.
- Rebate payments from the fund will be made each January and July to the approved company.
If you have questions about how this program or other tax programs could assist your business, please reach out to the Ryan contacts listed below.
1 Ala. Laws 2023, Act 34 (HB 241), signed by the governor on April 20, 2023.
TECHNICAL INFORMATION CONTACTS:
Maher Maso
Principal
Ryan
972.934.0022
maher.maso@ryan.com
Melissa Munoz
Principal
Ryan
505.312.4665
melissa.munoz@ryan.com
Savannah Jermance
Director
Ryan
505.312.4411
savannah.jermance@ryan.com
Meghan Sproule
Senior Consultant
Ryan
213.627.1719
meghan.sproule@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
- Topics
- Maher Maso
- Melissa Munoz