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AL HB273

Bill

Status

Engrossed

4/27/2023

Primary Sponsor

Jamie Kiel

Click for details

Origin

House of Representatives

Regular Session 2023

AI Summary

HB273 Summary

  • Allows qualifying employees earning no more than $50,000 in wages (or $75,000 adjusted gross income, $150,000 if married filing jointly) to deduct 100% of health insurance premiums paid through employer plans from Alabama gross income.

  • Expands qualifying employer definition to include businesses with fewer than 2,550 employees (changed from previous threshold).

  • Permits qualifying employers to deduct 100% of health insurance premiums paid on behalf of employees earning less than $75,000 annually from Alabama taxable income.

  • Tax deductions effective January 1, 2024, through December 31, 2028, or until cumulative tax expenditures reach $10 million, whichever occurs first, unless extended by legislative action.

  • Becomes effective on the first day of the third month following passage and gubernatorial approval.

Legislative Description

Relating to income taxes; to amend Section 40-18-15.3, Code of Alabama 1975, to revise the qualifications for employees and employers to receive the income tax deduction for health insurance premiums paid.

Taxation and revenue, qualifications for income tax deduction on health insurance premiums amended

Last Action

Referred to Committee to Senate Finance and Taxation Education

4/27/2023

Committee Referrals

Finance and Taxation Education4/27/2023
Ways and Means Education4/6/2023

Full Bill Text

No bill text available