HB 527 Alabama House · 2026 Regular Session

Individual income taxes; deduction for qualified overtime income established.

HB 527 creates a new Alabama individual income tax deduction for overtime pay. It allows taxpayers to deduct up to $1,000 annually from their taxable income for qualified overtime compensation earned during the year, effective for tax returns filed in 2025 through 2027. This directly affects Alabama residents who earn overtime wages, reducing their taxable income by up to $1,000 per year. The bill amends existing tax code language to add this specific deduction while making minor technical updates to the statute.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

House Passage

Mar 2026

Senate Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Feb 26, 2026 Signed Apr 17, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 3 edits · Apr 17, 2026

MINOR

The bill was finalized for signing (Enrolled) with minor formatting updates to the header and page numbers. The core policy content regarding tax deductions and sales tax suspensions remains unchanged from the previous version, though some legal citations were updated to reflect current federal tax code references.

TECHNICAL

Updated internal bill reference numbers (e.g., RBTICNY-2 to RBTICNY-3) and corrected the title from 'Engrossed' to 'Enrolled' to indicate final passage.

Reformatted the bill text to consolidate the title and purpose statement into a single continuous block, removing line breaks that were present in the previous version.

Updated specific federal tax code citations within the tax deduction section to ensure they match the most current legal statutes.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 8, 2026

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 1244

upper

Apr 7, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Mar 31, 2026

Upper · Passed

Pending Committee Action in Second House (Finance and Taxation Education)

upper

Mar 31, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1064

lower

Mar 31, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 1063

lower

Mar 31, 2026

Introduced

Shaw 1st Amendment Offered

lower

Mar 31, 2026

Lower · Passed

Lomax motion to Table - Adopted Roll Call 1062

lower

Mar 31, 2026

Introduced

Lands 2nd Amendment Offered

lower

Mar 31, 2026

Lower · Passed

Lomax motion to Table - Adopted Roll Call 1061

lower

Mar 31, 2026

Introduced

Lands 1st Amendment Offered

lower

Mar 31, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 1060

lower

Mar 31, 2026

Introduced

Ways and Means Education Engrossed Substitute Offered (Ways and Means Education)

lower

Mar 18, 2026

Lower · Passed

Reported Out of Committee House of Origin (Ways and Means Education)

lower

Feb 26, 2026

Lower · Passed

Pending Committee Action in House of Origin (Ways and Means Education)

lower

1 primary · 0 co-sponsors