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AL SB102
Bill
AI Summary
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Allows qualifying employees earning no more than $50,000 in wages and reporting no more than $75,000 adjusted gross income ($150,000 if married filing jointly) to deduct 100 percent of health insurance premiums paid through an employer-provided plan from Alabama gross income.
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Allows qualifying employers with fewer than 250 employees to deduct 100 percent of health insurance premiums paid on behalf of employees earning less than $75,000 annually in wages from Alabama taxable income.
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Changes the effective date for the deduction from tax years beginning after December 31, 2010 to tax years beginning after December 31, 2023.
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Caps the total tax deductions allowed under this section at $5,000,000 annually and sets an expiration date of December 31, 2028 unless extended by the Legislature.
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Takes effect on the first day of the third month following passage and approval by the Governor.
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.
Income tax, qualifying employers and employees authorized tax deduction for amounts paid for health insurance premiums, revised.
Last Action
Introduced and Referred to Senate Finance and Taxation Education
3/21/2023