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AL HB527
Bill
Status
Introduced
2/26/2026
Primary Sponsor
James Lomax
Click for details
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