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Public Statements

Court Sides with Governor Bentley in Lawsuit Brought by Former AEA President

Press Release

By:
Date:
Location: Montgomery, AL

Montgomery County Circuit Court Judge Truman Hobbs has dismissed a lawsuit filed by Former Alabama Education Association President Anita Gibson against Governor Robert Bentley, his Commissioner of Revenue and others.

Gibson's lawsuit claimed three Acts that were passed by the Legislature and signed into law last year by Governor Bentley were invalid. Plaintiffs argued that this legislation, which provided either tax deductions or tax credits, should have originated in the House of Representatives instead of the State Senate.

The tax incentives that came under fire in the lawsuit included incentives encouraging homeowners to weatherproof their homes, tax credits for businesses bringing jobs to Alabama, and tax credits to help neighborhoods repair infrastructure.

In an order this week, Judge Hobbs rejected Gibson's arguments and dismissed the case.

"The ruling of the court will help us further our mission of creating new jobs and improving communities across the state," Governor Robert Bentley said. "This lawsuit was simply a ploy by the Alabama Education Association. These tax incentives were properly enacted by the Legislature, and I signed them into law. They are needed for our communities, and I am pleased the court has dismissed this lawsuit."

Additional information on the Acts in question:

Act 2011-644: This Act pertains to homeowners receiving tax deductions when they make repairs to their homes after natural disasters. This Act encourages homeowners to make improvements which are recognized to improve the structure of homes to make them more durable during natural disasters.

Act 2011-648: This Act relates to tax incentives in the form of credits for tariffs paid by foreign companies that decide to locate in Alabama.

Act 2011-689: This Act encourages the formation of neighborhood infrastructure authorities to make improvements in their respective communities. These projects include improving curbs and sidewalks, sewage, drainage, and asphalt overlaying. Tax credits are given to individuals and businesses that make contributions in the form of assessments.


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