New Streamlined Exemption Certificate Procedure for Tax-Exempt Construction Projects – How It’s Working So Far

A discussion about the new streamlined process for applying for a project-specific exemption certificate was presented to BMSS in a memo written by Bradley Partners, Bruce P. Ely and James E. Long, Jr. based on their experience with all parties to a major construction project for an institution that is statutorily exempt from Alabama sales and use tax but is not classified as a government entity. As you may be aware, there were different rules for governmental entities versus non-governmental entities.

Effective for construction contracts entered into on or after January 1, 2024 (no grandfathering), Act 2023-526 extends the same project-specific exemption certificate procedure to construction contracts on behalf of all entities that have a statutory exemption from sales and use taxes. To read the memo in full and access a copy of the form and instructions, click here.