AL HB552

Adds Section 40-18-39.1 to the Alabama Code allowing corporations in controlled groups that include insurance companies to elect inclusion of other group members' business interest income when calculating deductions for business interest expense limitations.

Requires the corporation to make an opt-out election under federal law 26 U.S.C. § 168(k)(7) for all qualified property placed in service during the taxable year.

Limits eligibility to controlled groups primarily engaged in life and annuity insurance or property and casualty insurance business, classified under NAICS code 524113 or 524126 or their equivalents.

Applies retroactively to taxable years beginning after December 31, 2018, addressing limitations imposed by the 2017 federal Tax Cuts and Jobs Act on business interest expense deductions.

Becomes effective on the first day of the third month following passage and approval by the Governor.