A piece of legislation waiting to be signed by Gov. Kay Ivey will result in an incentive for the future Toyota-Mazda manufacturing plant worth a little less than $2 million.

State Rep. Danny Crawford, R-Athens, and State Sen. Arthur Orr, R-Decatur, carried bills to roll back ad valorem taxes on the $1.6-billion project. The bill was passed by both houses Tuesday.

Crawford explained legislation action was needed because neither county commissions or municipalities can approve rollback provisions.

Such rollbacks are enacted when property meant for one purpose is then reclassified for another purpose. In this case, about 2,400 acres of farmland will be the site of a large industrial project.

“Once a determination has been made that the rollback provision applies to the property, the assessing official must calculate the amount of taxes that would have been payable on the converted property if the sales price or the fair and reasonable market value, whichever is greater, had been used instead of the current use value,” according to the Alabama Department of Revenue. “The calculation of additional taxes is for the three years preceding the tax year beginning on the October 1 following the conversion of the property. The amount shall be additional taxes to be collected on first assessments prepared after the conversion of the property.”

“It’s a tool we have (to attract industry),” Crawford said. “This is the last nail in the barrel and gives (Toyota-Mazda) the complete package.”

All told, the project will receive about $700 million in incentives, including $380 million from the state and about $320 million from local governments. Those incentives include a mix of tax abatements, investment rebates, infrastructure improvements and the construction of a worker training facility.

Alabama competed against 11 other states to land the plant, which officials say will employ 4,000 workers and provide a $5.6-billion return on investment over 20 years. The new plant will produce both the Toyota Corolla and a Mazda crossover vehicle. An estimated 300,000 vehicles per year will roll off the assembly line when production begins in 2021.

“I’d like to thank Toyota-Mazda for their decision to choose Alabama and their investment in Limestone County,” Crawford said. “This partnership is one that will benefit the region and the state for many years to come.”