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AL HB527

Bill

Status

Introduced

2/26/2026

Primary Sponsor

James Lomax

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Creates a new Alabama individual income tax deduction for qualified overtime compensation, capped at $1,000 per taxpayer per year
  • Applies to tax years beginning January 1, 2025 through December 31, 2027 (three-year period)
  • Qualified overtime compensation is defined and calculated pursuant to 26 U.S.C. § 225 (federal tax code provisions)
  • Taxpayers may claim the overtime deduction regardless of whether they itemize deductions or take the standard deduction
  • Act becomes effective October 1, 2026

Legislative Description

Individual income taxes; deduction for qualified overtime income established.

Taxation & Revenue

Last Action

Pending House Ways and Means Education

2/26/2026

Committee Referrals

Ways and Means Education2/26/2026

Full Bill Text

No bill text available