Legislation Aims To Boost Research And Development Spending
HUNTSVILLE, Ala.(WHNT)-A bill that aims to increase research and development spending is working its way through the Alabama Legislature.
Sen. Arthur Orr (R-Decatur) is sponsoring SB 122, which would authorize tax refunds of up to 40 percent of expenditures for companies who invest in R&D projects in Alabama. Orr said north Alabama’s reputation as a high-tech hub doesn’t match up to the amount of money it should be bringing in on research and development spending, and believes current incentives simply aren’t competitive with what other states already offer.
“It [SB 122] will attract dollars here that we’re leaving on the table,” said Sen. Orr. “Most other states do have some kind of research and development tax credit, and the hope is to bring Alabama in line with other states…having a tax credit gives us a leg up in trying to accomplish that.”
The bulk of R&D work in Alabama already happens in the north part of the state, primarily at research hubs like the HudsonAlpha Institute for Biotechnology and nearby universities.
SB 122 already passed the Senate unanimously and now awaits a vote in the house.