A public-private group focused on economic issues is pushing for a fund to power economic development in Alabama without raising taxes.

The Alabama Growth Alliance, created last year by Gov. Kay Ivey, has endorsed the creation of the Alabama Development Fund.

According to Alabama Commerce Secretary Ellen McNair, the fund would allow Alabama to provide funding for a host of issues, including rural development, international business development offices, global marketing, quality-of-place initiatives and infrastructure improvement.

The fund would be self-sustaining through a “small portion” of sales and property taxes abated in future qualified economic development projects. The amount of money would have to be set by the Alabama Legislature, if it approves the fund.

The taxes for the fund would also reduce incentives in these projects while funding other economic improvements.

“With the Catalyst strategic economic development plan now in place, it is important to identify a sustainable source of new funding to fully implement this bold new strategy,” McNair said. “The creation of the Alabama Development Fund will represent a creative, responsible solution that doesn’t involve raising taxes or slashing programs.”

Ivey formed the Alabama Growth Alliance last August, peopled by 15 leaders from business and government.

State Sen. April Weaver (R-Alabaster) has sponsored a bill to establish the fund, along with State Rep. Andy Whitt (R-Madison). It would modify existing abatement laws to collect the tax money for the fund.

“This plan is an investment in the long-term economic prosperity of the state and aligns perfectly with other growth strategies we have adopted to keep Alabama moving forward at a time when competition for job-creating projects is intensifying,” Weaver said.

The state Legislature, whose 2025 session started Tuesday, must modify existing abatement laws to enable these tax collections for the initiative to become operational.

The changes would apply only to new economic development projects receiving abatements and would not impact projects that have already received abatements.

“It’s essential that we remain completive in this realm and take the next step to outperform our Southeastern neighbors,” Whitt said.