Gov. Ivey signs Alabama Development Fund legislation to power economic growth

Gov. Kay Ivey signed into law legislation creating the Alabama Development Fund, an initiative that will provide a sustainable, long-term funding source to power Alabama’s economic development efforts.

“Today, we are taking a bold step to secure Alabama’s economic future,” Ivey said. “The Alabama Development Fund will allow us to strengthen our communities, attract new investment and ensure that Alabama remains competitive on the global stage.”

“We are grateful for the leadership and tremendous support of the Alabama Growth Alliance (AGA), which was the inspiration behind this initiative,” said Ellen McNair, secretary of the Alabama Department of Commerce.

“In just over six months of existence, the AGA has made an impact on economic development that will allow Alabama to not only be more competitive but to engage in ways we have never been able to in the past.”

The AGA, a panel of 15 leaders from the public and private sectors, is co-chaired by Ivey and McNair. The public sector members also include the chair of Innovate Alabama as well as House and Senate leadership. Alabama Power President and CEO Jeff Peoples is a member of the AGA.

“The Alabama Development Fund represents the kind of forward-thinking solution we need to keep Alabama growing strong,” said Garlan Gudger, president pro tem of the Alabama Senate. “It’s a smart, sustainable approach that supports economic development across every corner of our state without raising taxes or cutting vital services. I’m proud to have worked alongside my colleagues and Governor Ivey to make this vision a reality for the people of Alabama.”

Nathaniel Ledbetter, speaker of the House of Representatives, called the signing of the Alabama Development Fund legislation a major win for Alabama’s future.

“By creating a reliable stream of resources for economic development, we’re empowering our communities, strengthening our infrastructure and setting the stage for long-term success,” he said. “I appreciate Governor Ivey’s leadership and the teamwork across the Legislature to bring this important initiative to life.”

Both the Alabama House of Representatives and the Senate overwhelmingly approved the legislation. McNair thanked the bill’s sponsors, state Sen. April Weaver and state Rep. Andy Whitt, and the Legislature’s leadership for passing the legislation with broad-based support.

“Economic development is about more than just job creation — it’s about building thriving communities, strengthening industries and improving the quality of life for all Alabamians,” McNair said. “With a dedicated, sustainable funding source, we can invest in rural assistance programs, an increased international footprint and local initiatives aimed at attracting and maintaining a quality workforce — key priorities outlined in our ‘Catalyst’ plan.

“This initiative ensures that Alabama remains competitive in attracting high-quality jobs and transformative projects for years to come.”

When it becomes effective on June 1, 2026, the Alabama Development Fund initiative will generate new funding for economic development by retaining a small portion of sales and property taxes that are abated in qualified economic development projects after that date.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.