Budget & Taxes

signed · Alabama · House Mar 5, 2026

HB 359: Amend the Sweet Home Alabama Tourism Investment Act; increase supplemental tax rebate; require certification of project costs

HB 359 amends Alabama's Sweet Home Alabama Tourism Investment Act to clarify that a $2.5 million annual tax rebate is supplemental to the initial award, not a replacement. It directly affects tourism companies seeking tax rebates for certified projects like resorts, attractions, or entertainment complexes. The bill requires these companies to document actual project costs through certification by an independent CPA, ensuring transparency about expenses. This change aims to verify that rebate amounts align with verified project investments, rather than estimated costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies $2.5M tax rebate is supplemental, strengthening tourism tax relief program and ensuring fiscal transparency.90% confidence

Sub-Topics Tax Incentives

in committee · Alabama · House Jan 13, 2026

HB 115: Physicians, rural physicians income tax credit, replace existing credit

HB 115 replaces Alabama's existing rural physician tax credit with a new program. It ends the current $5,000 annual credit (set to expire in 2028) by moving the termination date to December 31, 2026, while allowing physicians who used the old credit for fewer than five years to continue claiming it under the new rules through 2026. The new credit provides $10,000 annually for up to four years (for tax years 2027-2031) to physicians practicing in defined rural communities (populations under 75,000, including small municipalities or unincorporated areas). Physicians must apply through the Alabama Statewide Area Health Education Center Program Office, which verifies eligibility and issues certification before claiming the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases rural physician tax credit from $5,000 to $10,000 annually, providing targeted tax relief under Taxation & Revenue.95% confidence ✓ HealthcareSupports HealthcareProvides $10,000 annual tax credit for rural physicians to improve healthcare access in underserved areas, directly advancing provider availability in rural communities.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Alabama · Senate Jan 13, 2026

SB 111: Prepare Alabama Investment Program established, tax credits for donations to trade schools and trade programs authorized

SB 111 creates the "Prepare Alabama Investment Program" to fund trade schools and vocational programs through state tax credits. It allows individuals and businesses to claim tax credits against Alabama income, excise, premium, or utility taxes when donating to eligible trade schools, community foundations, or workforce programs. These donations must be used exclusively for constructing, maintaining, or upgrading facilities that support career technical education. The program is overseen by a board within the Alabama Department of Workforce, which certifies eligible entities and publishes approved recipients annually.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits to fund vocational programs, directing tax revenue toward education spending without increasing general taxes.95% confidence ✓ EducationSupports EducationCreates tax credit program to fund trade school facilities, directly advancing career technical education funding and infrastructure per bill's purpose.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill funds vocational training via tax credits, directly advancing workforce development and employment standards through career technical education programs.85% confidence

Sub-Topics Career & Technical Education

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signed · Alabama · Senate Apr 17, 2026

SB 221: Taxation; to exclude credit card transaction fees from sales and use tax calculations

SB 221 would change Alabama's sales tax rules by excluding credit card transaction fees from the taxable amount when customers pay by card. Specifically, merchants would no longer include fees charged by credit/debit card networks (e.g., interchange fees) when calculating sales or use tax on purchases. This directly affects merchants who currently pay tax on the total amount charged to customers, including these fees. The bill requires the Department of Revenue to create implementation rules and takes effect September 1, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExcludes credit card fees from taxable base, reducing state sales tax revenue. Directly weakens tax collection mechanism under Budget & Taxes.90% confidence

Sub-Topics Business Taxes Sales Tax

in committee · Alabama · House Feb 12, 2026

HB 304: Relating to the Advanced Technology and Data Exchange Fund; expenditure of monies from the fund, creation of additional advanced technology and data exchange funds

HB 304 would amend Alabama law to allow the Advanced Technology and Data Exchange Fund to be used for the general operation of courts, expanding its current limited use beyond specific purposes like electronic filing. The bill also creates three new funds: one for the Supreme Court, one for the Court of Civil Appeals, and one for the Court of Criminal Appeals. Each fund will support technology upgrades, including electronic case filing, data sharing with agencies, and staff training to improve court efficiency. The bill is currently pending in the House Committee on Ways and Means.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands fund usage for court operations and creates new funds for tech upgrades, directly allocating state monies to enhance judicial fiscal management and essential services.90% confidence ✓ TechnologySupports TechnologyBill creates funds for court technology upgrades including electronic filing and data sharing, directly advancing judicial technology infrastructure.95% confidence

Sub-Topics Government Spending

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signed · Alabama · House Feb 3, 2026

HB 200: Escambia County; authorizing additional motor vehicle license and registration tax

HB 200 authorizes Escambia County to impose an additional annual $5 fee on new vehicle registrations, transfers, or renewals starting in 2027. This fee applies to all vehicles registered within the county and is collected separately from existing vehicle registration charges. The revenue generated must be distributed monthly to the Escambia County Sheriff’s Law Enforcement Fund for law enforcement purposes. The fee requires county commission approval by December 1, 2026, and takes effect June 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes new $5 vehicle registration fee to fund sheriff's law enforcement, increasing county tax revenue for public safety services.95% confidence ✓ Criminal JusticeSupports Criminal JusticeBill allocates $5 annual fee to Escambia County Sheriff's Law Enforcement Fund for law enforcement purposes, directly funding criminal justice operations.95% confidence

Sub-Topics Law Enforcement

in committee · Alabama · House Jan 13, 2026

HB 85: Ad valorem taxes, reappraisal of Class II and Class III property every three years

HB 85 requires Alabama counties to reappraise Class II (commercial/industrial) and Class III (agricultural) property every three years instead of the current ad hoc system. This directly affects property owners in these categories by changing how their tax assessments are calculated. If a reappraisal shows higher property value, the increased tax amount is phased in equally over the next three years rather than applying fully immediately. The bill amends Alabama law to implement this schedule and phase-in process, effective May 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesPhases in property tax increases over three years for commercial/agricultural properties, reducing immediate tax burden per bill's phased-in implementation.85% confidence

Sub-Topics Property Tax

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passed · Alabama · House Jan 20, 2026

HB 87: Taxation; to exempt sales of deer feed from sales and use taxes

HB 87 exempts sales of deer feed (specifically shelled corn sold for wild deer consumption) from Alabama's state sales and use taxes. It also allows counties and municipalities to choose whether to exempt deer feed sales from local taxes. The bill directly affects businesses selling deer feed and local tax authorities, changing how these sales are taxed at both state and local levels. The exemption takes effect on September 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts deer feed from state sales tax, providing tax relief and directly altering tax policy per bill's explicit language.95% confidence

Sub-Topics Sales Tax Tax Incentives

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signed · Alabama · House Mar 17, 2026

HB 77: Taxation and Revenue; disabled veterans' homestead taxes inclusion in debt-to-income ratio under certain circumstances prohibited

HB 77 helps disabled veterans with a 100% VA disability rating by streamlining their access to property tax exemptions when applying for home mortgages. The bill requires tax officials to issue a "tentative certificate" of disability exemption upon receiving basic documentation (like VA disability proof and purchase agreements) within 20 days. It also prohibits lenders from including homestead property taxes in a veteran’s debt-to-income ratio calculation when processing their mortgage application. This directly affects veterans seeking home loans who qualify for Alabama’s homestead tax exemption. The law takes effect October 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief for disabled veterans by excluding homestead taxes from mortgage debt calculations, easing financial burden for qualifying individuals.95% confidence ✓ HousingSupports HousingProhibits lenders from counting homestead taxes in debt-to-income ratio for disabled veterans, easing mortgage qualification and homeownership access for a vulnerable group.92% confidence ✓ VeteransSupports VeteransStreamlines property tax exemptions for disabled veterans, preventing lenders from including taxes in debt-to-income calculations.95% confidence

Sub-Topics Property Tax Tax Incentives Mortgages Property Taxes Veteran Benefits Veteran Healthcare Veteran Housing

in committee · Alabama · Senate Jan 13, 2026

SB 18: Taxation; state privilege tax on revenues of pari-mutuel wagering activities, levied

SB 18 would impose a new 4% state tax on net gambling revenues from historical horse racing pari-mutuel wagering operations. It applies specifically to licensed businesses running historical horse racing betting, replacing their existing privilege taxes with this single rate. The tax base excludes free bets, promotional credits, and prize payouts, while explicitly preserving current tax structures for live horse racing, greyhound racing, and simulcast operations. The bill does not authorize new gambling activities or alter existing legal gambling frameworks.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new 4% tax on gambling revenues, increasing state budget revenue without defunding programs or targeting lower-income groups.95% confidence

Sub-Topics Business Taxes Sales Tax

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