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AL HB94
Bill
Status
1/12/2010
Primary Sponsor
Gregory Canfield
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AI Summary
HB94 Summary
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Creates a new exemption allowing up to $10,000 of payments from "defined contribution plans" (as defined in Section 414(i) of the Internal Revenue Code) to be exempt from Alabama state income tax for retirees and designated beneficiaries.
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Exemption applies only to individuals with adjusted gross income not exceeding $75,000 ($150,000 if married filing jointly).
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Phases in the exemption over four adjustment years in equal 25% installments, with each phase beginning only after the Alabama Department of Finance certifies at least 3% estimated growth in the Education Trust Fund.
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Becomes effective for tax years beginning on or after January 1, 2011, and requires annual certification by the Department of Finance to the Department of Revenue regarding Education Trust Fund growth.
Legislative Description
Income tax, retirement income from defined contribution plans, exempt under up to certain amounts, Sec. 40-18-19 am'd.
Taxation
Last Action
Read for the first time and referred to the House of Representatives committee on Education Appropriations
1/12/2010