HB391 Summary

• Reduces minimum business privilege tax from $100 to $50 for taxable years beginning after December 31, 2022, for corporations, limited liability entities, and disregarded entities doing business in Alabama.

• Provides full exemption from business privilege tax and associated filing requirements for taxpayers with amounts due of $100 or less for taxable years beginning after December 31, 2023.

• Exemptions do not apply to entities subject to the tax levy under Section 20-2A-80 (Act 2021-450).

• Maintains existing tax rate structure based on taxable income brackets ranging from $0.25 per $1,000 to $1.75 per $1,000.

• Effective on the first day of the third month following passage and approval by the Governor.