The 2026 regular session of the Alabama Legislature delivered a series of measures with significant implications for the Mobile region’s business community, spanning workforce development, economic development, tax policy and key industry sectors including manufacturing, tourism and coastal resources.

Throughout the session, the Mobile and Baldwin County legislative delegations demonstrated strong, consistent support for policies that strengthen the region’s competitiveness and expand opportunities for employers and workers alike. Their continued support was instrumental in advancing priorities important to the Gulf Coast business community, and the Mobile Chamber expresses its appreciation for their leadership, collaboration and commitment to sustained economic growth across the region.

Workforce Development

Lawmakers approved several measures aimed at strengthening Alabama’s workforce pipeline, with direct implications for Mobile-area employers.

HB517, the Talent Readiness and Industry Needs (TRAIN) Act, sponsored by Rep. James Lomax, R-Huntsville, allows businesses to partner with educational institutions to provide career and technical education instruction. The law creates tax credits for companies that loan employees to teach or invest in curriculum development, and it establishes a streamlined certification process for industry professionals to enter the classroom.

In addition, SB149, sponsored by Sen. Matt Woods, R- Centre, creates a temporary teaching certificate for military veterans, expanding the pool of potential instructors in high-demand fields. HJR189, sponsored by Rep. Frances Holk-Jones, R-Foley, signals continued legislative support for an additional $150 million in increased career and technical education funding.

Impact: These measures give employers more direct involvement in workforce training, helping address labor shortages in industries such as manufacturing, construction and health care. Businesses have new tools and incentives to help build and sustain their workforce pipeline.

Economic Development

Several bills enhance the ability of local governments to recruit and support large-scale projects.

HB510, sponsored by Rep. Chris Pringle, R-Mobile, and SB333, sponsored by Sen. Vivian Figures, D-Mobile, expand the authority of industrial development boards in Class 2 municipalities, including Mobile, allowing them to support a broader range of projects.

HB626, sponsored by Rep. Andy Whitt, R-Harvest, and HB142, sponsored by Rep. Margie Wilcox, R-Mobile, increase flexibility for tax increment districts, including allowing larger areas to be included and enabling reimbursement for certain land acquisition costs tied to major manufacturing zones.

Impact: These changes improve Mobile’s competitiveness in attracting major industrial and commercial investments and support redevelopment of underutilized properties. Local leaders have greater flexibility to pursue economic development opportunities and long-term growth.

Tax Relief Measures

HB527, sponsored by Rep. James Lomax, R-Huntsville, provides a state income tax deduction of up to $1,000 for qualified overtime compensation and temporarily suspends the state portion of sales taxes on food.

HB308, sponsored by Rep. Mark Shirey, R-Mobile, proposes expanded property tax relief for eligible seniors in Mobile County, subject to voter approval.

Impact: Increased disposable income could support consumer spending, while overtime tax relief may benefit employee retention.

Tourism and Entertainment Incentives Extended

Lawmakers updated programs supporting Alabama’s tourism and film industries.

HB379, sponsored by Rep. Terri Collins, R-Decatur, revises the Entertainment Industry Incentive Act to include additional support for smaller productions and extends the program’s evaluation timeline.

HB359, sponsored by Rep. Andy Whitt, R-Harvest, modifies the Sweet Home Alabama Tourism Investment Act, including updates to rebate structures and project certification requirements.

Impact: The changes are expected to attract additional film, television and tourism-related investment to the state. Mobile’s hospitality and entertainment sectors could see increased activity and spending.

Coastal and Seafood Industries

HB277, sponsored by Rep. Wilcox, R-Mobile, allows oyster aquaculture operators to harvest and serve their products for on-site tastings.

SB90, sponsored by Sen. David Sessions, R-Grand Bay, revises seafood dealer licensing fees.

HB38, sponsored by Rep. Chip Brown, R- Hollinger’s Island, establishes a seagrass restoration task force.

Impact: These updates support growth in aquaculture, seafood businesses and environmental sustainability efforts along the Gulf Coast. 

Disaster preparedness and regulatory updates

HB27, sponsored by Rep. Chip Brown, R- Hollinger’s Island, expands allowable uses and contribution limits for catastrophe savings accounts, aimed at helping property owners prepare for natural disasters.

HB254, sponsored by Rep. Shane Stringer, R-Citronelle, restricts certain vessel inspections, affecting marine operators and enforcement practices.

Impact: Businesses along the Gulf Coast may benefit from enhanced financial preparedness tools and regulatory adjustments.

Local Redevelopment and Community Tools Expanded

HB501, sponsored by Rep. Napoleon Bracy, D-Prichard, authorizes the creation of self-help business improvement districts in Prichard, allowing property owners to fund services such as maintenance and security.

HB496, sponsored by Rep. Barbara Drummond, D-Mobile, revises municipal lien foreclosure procedures, including notification requirements and bidding preferences for adjacent property owners.

Impact: These measures provide additional tools for neighborhood revitalization and commercial corridor improvement. Communities gain more options to address blight and support local business districts.

Overall takeaway

The 2026 legislative session focused on workforce development, economic competitiveness and targeted industry support, with direct implications for Mobile-area employers and economic growth.

For Mobile Chamber members, the legislation expands tools to address workforce shortages through employer engagement in career and technical education, new certification pathways and additional incentives for participation in training programs. At the same time, changes to economic development law provide local governments and development entities with greater flexibility to structure incentives, support large-scale industrial projects and advance redevelopment efforts.

The session also included targeted tax relief measures and continued investment in tourism, entertainment and coastal industries, which may support consumer spending and broaden economic activity across key sectors.