April Madness

Last week wasn’t all smooth sailing in either legislative chamber as legislation was moved that stirred the emotions of both Democrats and Republicans. Both chambers still have general fund and education trust fund budgets to consider, leaving little time for reconciliation.

 

A new bill dropped last week from Rep. Mike Shaw related to IT audits of state-chartered financial institutions, HB587. Please review this bill and submit your comments to us ASAP. You’ll find a link to the bill below.

 

We were pleased that a few of our bipartisan bills did see movement toward passage this week. We will continue to monitor and advocate for these bills over the next seven session days.

 

1. Rep. David Faulkner’s HB163 (HB163-int.pdf) – Still no movement on the R&D deduction bill, retroactive to 2024. The Finance & Taxation-Education Committee did not meet last week. We anticipate them having a full agenda this week, and are continuing to advocate for this bill to be selected for movement.

 

2. Sen. Clyde Chambliss’s SB174 (SB174-int.pdf) – The House Judiciary Committee gave this bill a favorable report. All that’s left is for the House to pass the bill and the Governor to sign.

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.

This bill received a favorable report from Ways & Means-Education Committee last week with amendments we advocated for and should clear the House Floor this week. Along with Manufacture Alabama and BCA, we are already working with Senate leadership to get this bill moved in time.

 

4. Rep. Terri Collins’s HB365 (HB365-eng.pdf) – Creates the Alabama STEM Council within the Department of Workforce to advise State Government on ways to improve STEM-related education, awareness and workforce development.

Thanks to Rep. Collins’ help, the bill has been amended to include “accounting” as a STEM-related career. The amended bill has passed the second chamber’s committee and should be on the Senate Floor this week. Once passed, the House would have to concur with that amendment.

 

5. 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.

 

6. Rep. Mike Shaw’ HB587 (HB587-int.pdf) – This bill would provide qualifications for information technology auditors hired to perform information technology audits on certain state-chartered financial institutions. We encourage firms performing this work to review this bill quickly and reach out with comments.

CLICK HERE FOR THE WATCHLIST

There have been 891 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.