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AL HB181

Bill

Status

Introduced

1/12/2010

Primary Sponsor

Tommy Sherer

Click for details

Origin

House of Representatives

Regular Session 2010

AI Summary

  • Amends Section 40-18-15.3 of the Alabama Code to increase the health insurance premium tax deduction from 50 percent to 100 percent for qualifying employees and employers.

  • Applies to tax years beginning after December 31, 2008, allowing qualifying employees to deduct health insurance premiums paid through employer-provided plans from Alabama gross income.

  • Defines qualifying employees as Alabama residents earning no more than $50,000 in wages annually ($75,000 adjusted gross income, or $150,000 if married filing jointly) employed by qualifying employers with fewer than 25 employees.

  • Allows qualifying employers to deduct health insurance premium payments made on behalf of qualifying employees from Alabama taxable income, using employee total compensation for deduction calculation purposes.

  • Takes effect immediately upon passage and approval by the Governor.

Legislative Description

Income tax, employer's deduction for health insurance premiums, compensation paid to qualifying employees for calculation of employer's deduction further provided for, Sec. 40-18-15.3 am'd.

Taxation

Last Action

Read for the first time and referred to the House of Representatives committee on Education Appropriations

1/12/2010

Committee Referrals

Education Appropriations1/12/2010

Full Bill Text

No bill text available