Budget & Taxes

passed · Alabama · Senate Feb 25, 2026

SB 79: Individual income taxes, to allow an exclusion from gross income for contributions to Trump Accounts and to make permanent the exclusion for amounts paid by an employer on any qualified education loan

SB 79 would amend Alabama's tax code to exclude employer contributions to "Trump Accounts" from an employee's taxable income, currently required to be included under federal law. It also makes permanent an existing exclusion for employer-paid amounts toward qualified education loans, which was set to expire. These changes directly affect Alabama individual taxpayers who receive such employer benefits. The bill updates Section 40-18-14 of the Alabama Code to reflect these tax exclusions without altering other tax provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax exclusions for employer contributions to education loans and Trump Accounts, reducing taxable income and providing tax relief to individual taxpayers.90% confidence

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in committee · Alabama · Senate Jan 27, 2026

SB 207: Captive insurers, additional requirements, certain minimum paid in capital amounts increased

SB 207 increases the minimum capital requirements and premium tax amounts for certain captive insurance companies operating in Alabama. It adds new requirements, including contracting with commissioner-approved managers, accountants, and actuaries; submitting detailed business plans, ownership information, and director/officer backgrounds; and filing annual audited financial statements with actuarial certifications of loss reserves. The bill also mandates that Alabama's insurance commissioner consider a captive insurer's manager competence and business plan when reviewing applications for licensure. These changes apply to all licensed captive insurers in the state and require notice of any material changes to previously submitted information.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases premium tax amounts for captive insurers, directly boosting state tax revenue and supporting budgetary resources.95% confidence

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signed · Alabama · Senate Apr 22, 2026

SB 154: State employees, cost-of-living increase for fiscal year beginning October 1, 2026

SB 154 would provide a 2% cost-of-living salary increase for most Alabama state employees, effective October 1, 2026. This applies to classified/unclassified state employees, judicial personnel, legislative staff, and county health department employees paid through state funds under the State Merit System. The bill excludes employees covered by existing labor contracts or local supplements tied to state salaries. Funding for the increase would be included in the annual state budget, not through this bill itself. The measure does not affect pay for employees already covered by negotiated agreements.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates state budget funds for employee salary increases, advancing public sector compensation within fiscal management framework.92% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides 2% cost-of-living salary increase for state employees, advancing wage standards under Labor & Employment topic.95% confidence

Sub-Topics State Budget Public Employees

in committee · Alabama · House Jan 27, 2026

HB 339: Retirement Systems of Alabama; to provide a benefit increase for certain retirees of the Teachers Retirement System

HB 339 would provide a 4% cost-of-living increase to certain Alabama Teachers' Retirement System retirees and their beneficiaries, effective October 1, 2026. It directly affects retirees who retired before October 1, 2025, have 25+ years of service, and receive $25,000 or less annually in benefits, as well as surviving spouses of retirees meeting similar criteria. The increase is subject to legislative funding approval each year and would not apply to individuals whose Medicaid eligibility would be impaired by the higher benefit. This change requires separate annual appropriations to fund the increase, with payments resuming only if the required funding is included in the Education Trust Fund budget.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides annual funding for retiree benefits, increasing state budget allocation for public pensions95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides 4% cost-of-living increase for eligible retired teachers' benefits, expanding post-employment worker benefits per topic description.95% confidence

Sub-Topics Pensions

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passed · Alabama · Senate Mar 19, 2026

SB 212: Fayette County; senior property tax exemption authorized, constitutional amendment

SB 212 proposes a constitutional amendment for Fayette County, Alabama, to allow residents aged 65 or older who own and live in their primary single-family home for at least five years to claim a property tax exemption. The exemption would freeze the property’s assessed value from the year before claiming it, reducing annual tax bills. To qualify, seniors must submit a written application to Fayette County’s Revenue Commissioner between October 1 and December 31, 2027, and maintain the home as their primary residence. The amendment requires voter approval to take effect and does not affect millage rates or other exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax relief for seniors by freezing assessed value, reducing their tax burden and aligning with fiscal responsibility for vulnerable populations.95% confidence

Sub-Topics Property Tax Tax Incentives

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signed · Alabama · House Feb 19, 2026

HB 310: Limestone County; senior property tax exemption, authorized; constitutional amendment

HB 310 proposes a constitutional amendment for Limestone County, Alabama, that would allow residents aged 65 or older to claim a property tax exemption on their primary residence. To qualify, homeowners must have lived in the property as their main home for at least five years and own it as a single-family residence. The exemption freezes the property’s assessed value from the year before claiming it (for the 2026 value, effective October 2027), while requiring continued residency and maintaining other eligible exemptions. This change requires voter approval through a statewide election under Alabama’s constitutional amendment process.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors aged 65+, reducing their tax burden and aligning with tax relief for lower/middle income residents.90% confidence

Sub-Topics Property Tax Tax Incentives

signed · Alabama · Senate Apr 9, 2026

SB 153: Children First Trust Fund, appropriations from for fiscal year ending September 30, 2027, use of allocation pursuant to Section 41-15B-2.2, Code of Alabama 1975 and this act, tobacco settlement revenues deposited in fund within 30 days of receipt

SB 153 appropriates $36.6 million from Alabama's Children First Trust Fund and $43.8 million from other tobacco settlement funds for the fiscal year ending September 30, 2027. The funds will be distributed quarterly to child and family services agencies, including the Alabama Department of Human Resources ($8.85M) and Alabama Medicaid Agency ($1.39M), based on tobacco settlement revenues received within 30 days. The bill requires written notifications of allocations by the State Director of Finance, conditions funding on actual tobacco revenue receipt, and transfers a portion of the fund to the State General Fund for the State Board of Education. Unused funds remain in the Children First Trust Fund rather than reverting to the general budget.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $80.4M from tobacco settlement funds to child/family services agencies, funding essential public programs per appropriations language.95% confidence ✓ HealthcareSupports HealthcareAllocates $1.39M to Alabama Medicaid Agency from tobacco settlement funds, directly funding healthcare coverage for low-income residents.95% confidence

Sub-Topics State Budget Medicaid

signed · Alabama · Senate Apr 9, 2026

SB 152: Children's Health Insurance Program and Department of Human Resources, tax funds distributed

SB 152 increases the administrative funding for Alabama's food stamp program from 5% to 7.5% of statewide benefits issued, directly affecting the Department of Human Resources (DHR). It also changes how the Children's Health Insurance Program (CHIP) is funded by removing its requirement to be prioritized against use tax revenue, instead allowing other state revenue sources to support CHIP. The bill amends specific sections of Alabama law to adjust the distribution of sales and use tax funds, ensuring DHR receives a fixed annual amount for food stamp administration while providing flexibility for CHIP funding. These changes are limited to administrative adjustments in tax fund allocation, with no new program benefits or eligibility changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases DHR administrative funding from 5% to 7.5% and adjusts tax revenue allocation to support CHIP, directly advancing public service funding under tax policy.90% confidence ✓ HealthcareSupports HealthcareBill modifies CHIP funding to allow flexible revenue sources, preventing defunding and ensuring program stability for children's health insurance.90% confidence

Sub-Topics Revenue Sales Tax Children's Health Insurance Medicaid

passed · Alabama · House Mar 5, 2026

HB 342: Taxation; participation in the federal tax credit for individuals making qualified contributions to scholarship granting organizations provided for

HB 342 allows Alabama to participate in a federal tax credit program that enables individuals to claim a credit on their federal income tax for contributions to scholarship granting organizations (SGOs). The bill requires the Alabama Department of Revenue to annually submit a list of qualifying SGOs in the state to the federal government and certify Alabama's participation. This ensures Alabama residents can use the federal credit for eligible contributions starting in tax years after 2026. The bill takes effect immediately and does not create a new state tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enables federal tax credit for contributions to scholarship organizations, providing direct tax relief to individuals. This aligns with tax relief indicators for the Budget & Taxes topic.95% confidence ✓ EducationSupports EducationEnables tax credits for private school scholarships via SGOs, expanding educational access for K-12 students through private school funding options.90% confidence

Sub-Topics Income Tax Tax Credits School Choice Student Financial Aid

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in committee · Alabama · House Jan 27, 2026

HB 338: Employees' Retirement System; state and local retirees four percent cost-of-living benefit increase

HB 338 would provide a 4% cost-of-living increase (minimum $15 monthly) for state and local retirees and beneficiaries under Alabama's Employees' Retirement System who retired before October 1, 2025. This applies to retirees from most state/local employers, excluding those whose employers participated under specific sections (36-27-6, 7, or 7.1) unless those employers elect to participate. The increase is subject to legislative appropriation, and Medicaid recipients whose eligibility would be impaired by the increase are excluded. Funding would be distributed from employer contributions based on active member salaries.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires legislative appropriation for retiree COLA increase, directly increasing state budget expenditure on retirement benefits.95% confidence

Sub-Topics Appropriations Pensions

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