On May 9, 2013, Alabama Governor Robert Bentley signed into law House Bill 419, which relates to construction projects for governmental entities who are exempt from sales and use taxes.

HB419 permits the Alabama Department of Revenue to grant certificates of exemption from sales and use taxes to contractors and subcontractors licensed by the Alabama State Licensing Board for General Contractors. It applies to the purchase of building materials, construction materials and supplies, and other tangible property that becomes part of the structure or project for a governmental entity who is exempt from the payment of sales and use taxes. The exemption does not apply to contracts for the construction of a highway, road or bridge for a governmental entity who is exempt from payment of sales and use taxes.