HB61 Summary

• Amends Alabama Code Section 40-18-15.3 to allow qualifying employees to deduct 100 percent of health insurance premiums paid as part of an employer-provided health insurance plan from Alabama gross income, in addition to any other available deductions.

• Allows qualifying employers with fewer than 25 employees to deduct 100 percent of health insurance premiums paid on behalf of qualifying employees from Alabama taxable income, in addition to any other available deductions.

• Defines qualifying employees as Alabama residents employed by qualifying employers who earn no more than $50,000 in wages annually and report no more than $75,000 adjusted gross income ($150,000 if married filing jointly).

• Increases the deduction from 50 percent to 100 percent of health insurance premium amounts and changes the effective date from tax years beginning after December 31, 2008 to tax years beginning after December 31, 2010.

• Takes effect immediately upon passage and approval by the Governor, with conflicting laws repealed.