Limited Oxygen

There are twelve session days left for the 2025 regular session and leaders in both parties are already feeling the time crunch. Issues related to pharmacy benefit managers, health insurance providers, budgets, education reforms and taxes have already taken a toll on the oxygen levels in the Statehouse, and many of those remain unsettled. Already, Senate Leadership has publicly decided to table any gambling conversations for this session, signaling priorities are getting tight.

 

There remain several bills we are pushing for favorable passage and many more we’re just keeping an eye on. We will continue pass along any movement on issues important to CPAs as they happen.

 

1. Rep. David Faulkner’s HB163 (HB163-int.pdf) – The R&D deduction bill, retroactive to 2024, was not on the committee’s agenda last week. We know several of you are holding tax returns pending resolution of this bill, and we’ve passed that information along. We are continuing to advocate for passage and still believe it has a good chance.

 

2. Sen. Clyde Chambliss’s SB174 (SB174-int.pdf) – No update from last week. The business and municipality community has built a solid consensus around this bill in a way that gives it a great chance of passing.

Currently, unfair business license taxes require taxpayers to appeal to the circuit court in the jurisdiction of the taxing agency. The ability to file these appeals with the Alabama Tax Tribunal saves taxpayers time and money. We are advocating for the passage of this bill.

 

3. Rep. Danny Garrett’s HB379 (HB379-int.pdf) – Creates conditions under which a non-resident employee working temporarily in Alabama can be exempt from withholding and paying Alabama income tax.

We have received positive responses to our recommendations for this bill, which would bring our state more in-line with other states and will simplify and enhance compliance. We are also advocating for a provision related to temporary nonresident disaster relief workers.

 

4. Chairman Garrett’s HB386-389 (HB386-int.pdf, HB387-int.pdf, HB388-int.pdf, HB389-int.pdf) – This series of bills would make permanent tax-reductions to grocery sales taxes, increases the optional standard deduction for income taxes, and increases the tax exemption for taxable retirement income. These bills have passed the House.

CLICK HERE FOR THE WATCHLIST

There have been 829 bills filed as of this weekend. The bills in their entirety can be found at https://alison.legislature.state.al.us and, if you have any additional questions or comments, please reach out to me at rpearson@alabama.cpa.