Week Two Update

If your company or client has research and development expenses subject to 5-year amortization (per the TCJA), pay close attention to HB163 (Faulkner). The bill seeks to “decouple” the state’s treatment of R&D expenses from the TCJA, allowing taxpayers to expense them for state tax purposes immediately. But it gets better… there is movement behind an amendment that would make the change retroactive to January 1, 2024. Assuming this amendment is favorable, we are advocating that the legislators move this bill through the process quickly. I’ll alert you when updates are available.

As of this weekend, 463 bills have been filed. The full text of the bills can be found at https://alison.legislature.state.al.us. If you have any additional questions or comments, please feel free to reach out to me at rpearson@alabama.cpa.