# Ala. Code § 41-23-252: Section 41-23-252 Definitions. (Amended by Act 2026-550) > Alabama · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-252 ## Section - **Citation:** Ala. Code § 41-23-252 - **Heading:** Section 41-23-252 Definitions. (Amended by Act 2026-550) - **Jurisdiction:** Alabama - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Alabama Code / Title 41 / Chapter 23 / Section 41-23-252 ## Text AMENDED BY ACT 2026-550, EFFECTIVE JUNE 1, 2026. SEE ACT FOR REVISED LANGUAGE. For the purpose of this article, the following words and phrases shall have the following meanings: (1) ADECA. The Alabama Department of Economic and Community Affairs. (2) ALABAMA RESEARCH ENTITY. One or more of the following: a. A public or private university in the state in partnership with a private sector applicant. b. A university research foundation affiliated with a public or private university in the state in partnership with a private sector applicant. c. A public two-year college in the state in partnership with a private sector applicant. d. A publicly owned hospital in the state in partnership with a private sector applicant. e. An entity duly formed, domiciled, or qualified to do business in the state in partnership with a private sector applicant and that meets each of the following criteria: 1. Is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. 2. Is predominantly engaged in research and non-commercial development activities undertaken for the purpose of discovering information that is technological or biotechnological in nature, involves a process of experimentation, and the application of which is intended to be used in the development of a new or improved product, service, or treatment. 3. Has its headquarters and principal place of business in the state. 4. Has, or is anticipated to have, at least 75 percent of its property and payroll in Alabama, using the property and payroll factor calculations found in Title 40. (3) APPROVED ACTIVITY. The conduct of an activity that is predominantly any one or more of the following: a. Described by NAICS Code 1133, 115111, 2121, 22111, 221330, 31 (other than 311811), 32, 33, 423, 424, 482, 4862, 48691, 48699, 48819, 4882, 4883 (other than 48833), 493, 511, 5121 (other than 51213), 51221, 517, 518 (without regard to the premise that data processing and related services be performed in conjunction with a third party), 51913, 52232, 54133 (if predominantly in furtherance of another activity described in this article), 54134 (if predominantly in furtherance of another activity described in this article), 54138, 5415, 541614, 5417, 55 (if not for the production of electricity), 561422 (other than establishments that originate telephone calls), 562213, 56291, 56292, 611512, 927, or 92811. b. The production of biofuel as the term is defined in Section 2-2-90(c)(2). c. A target of the state’s economic development efforts pursuant to either of the following: 1. The Accelerate Alabama Strategic Economic Development Plan adopted in January 2012 by the Alabama Economic Development Alliance, created by Executive Order Number 21 of the Governor on July 18, 2011, or any amended version or successor document. 2. A type listed in a regulation adopted by the Department of Commerce. (4) NAICS CODE. Any sector, subsector, industry group, industry, or national industry of the 2012 North American Industry Classification System, or any similar classification system developed in conjunction with the United States Department of Commerce or Office of Management and Budget. (5) QUALIFIED RESEARCH. The meaning given in 26 U.S.C. § 41(d), if conducted in Alabama in pursuit of an approved activity. In applying any terms in 26 U.S.C. § 41, “qualified research” shall have the meaning given herein. ## Nearby sections - [Ala. Code § 41-23-1 Section 41-23-1 Creation; Composition; Transfer of Functions, Etc., to Department](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-1.md) - [Ala. Code § 41-23-2 Section 41-23-2 Implementation of Duties and Functions by Employees in Classified Service; Salaries](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-2.md) - [Ala. Code § 41-23-3 Section 41-23-3 Transfer of Appropriations to Department](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-3.md) - [Ala. Code § 41-23-4 Section 41-23-4 Appointment of Director; Term of Office; Salary; Qualifications; Planning and Programming by Department](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-4.md) - [Ala. Code § 41-23-5 Section 41-23-5 Establishment of Divisions; Appointment of Division Chiefs; Oath of Office; Restrictions on Employment; Directors of Merged Agencies Abolished; Purpose of Chapter](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-5.md) - [Ala. Code § 41-23-6 Section 41-23-6 Promulgation of Rules and Regulations](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-6.md) - [Ala. Code § 41-23-7 Section 41-23-7 Legislative Oversight Commission](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-7.md) - [Ala. Code § 41-23-8 Section 41-23-8 Traffic Safety Trust Fund Established](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-8.md) - [Ala. Code § 41-23-20 Section 41-23-20 Short Title; Legislative Findings and Purpose](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-20.md) - [Ala. Code § 41-23-21 Section 41-23-21 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-21.md) - [Ala. Code § 41-23-22 Section 41-23-22 Enterprise Zones Generally](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-22.md) - [Ala. Code § 41-23-23 Section 41-23-23 Applications; Selection of Zones; Enterprise Zone Advisory Council](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-23.md) - [Ala. Code § 41-23-24 Section 41-23-24 Tax Incentives; Adoption of Rules to Implement Tax Credits and Incentives; Maximum Tax Credit Per New Permanent Employee; Application of Tax Credits; Tax Credits Are in Addition to Exemptions and Credits Under Chapter 18 of Title 40; No Credits for Taxes to Other States](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-24.md) - [Ala. Code § 41-23-25 Section 41-23-25 Nontax Incentives](https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-25.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AL_T41_C23_S41-23-252. Check the current official text before relying on it. Not legal advice.