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AL HB243
Bill
Status
2/2/2021
Primary Sponsor
Danny Garrett
Click for details
AI Summary
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Allows individual taxpayers to deduct up to $5,000 per year in contributions to Alabama Achieving a Better Life Experience (ABLE) savings accounts from gross income, regardless of whether they itemize deductions.
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Deduction applies to contributions made on or after January 1, 2021, made by or on behalf of the taxpayer to a qualifying Alabama ABLE savings account.
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Requires taxpayers to add back to their income any nonqualified withdrawals plus 10% penalty in the year the withdrawal is distributed.
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Excludes rollover amounts transferred to an Alabama ABLE savings account from the deduction if an Alabama income tax deduction has already been claimed for those amounts.
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Becomes effective for tax years beginning after December 31, 2020, following passage and Governor approval.
Legislative Description
Taxation, individual income tax, income tax deduction up to five thousand dollars per annum for contributions made to Alabama Achieving a Better Life Experience (ABLE) savings account, Sec. 40-18-15.8 added
Taxation
Last Action
Indefinitely Postponed
5/6/2021