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AL HB418

Bill

Status

Introduced

3/1/2022

Primary Sponsor

Kyle South

Click for details

Origin

House of Representatives

Regular Session 2022

AI Summary

HB418 Summary

  • Repeals Section 40-18-39.1, Code of Alabama 1975, which modified business interest expense deduction limitations for certain Alabama taxpayers.

  • Allows Alabama C corporations, Subchapter K entities, disregarded entities, and S corporations to deduct an amount equal to business interest expense disallowed on their federal income tax return under 26 U.S.C. § 163(j).

  • Does not limit the use of any carryforward of business interest disallowed in previous taxable years under federal law.

  • Becomes effective for taxable years beginning on or after January 1, 2022, upon passage and approval by the Governor.

Legislative Description

Relating to corporate income tax deductions, providing business interest expense deduction limitations, to provide a deduction equal to the business interest expense disallowed on the federal income tax return as a result of 26 U.S.C. Section 163 (j), Sec. 40-18-39.1 repealed.

Income Tax

Last Action

Read for the first time and referred to the House of Representatives committee on Ways and Means Education

3/1/2022

Committee Referrals

Ways and Means Education3/1/2022

Full Bill Text

No bill text available