Budget & Taxes (Tax Incentives)

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.

HB 4 establishes the Alabama Broadband Investment Maximization Act, exempting purchases of broadband equipment and supplies for projects funded or administered by the Alabama Department of Economic and Community Affairs (ADECA) from state sales and use taxes. This directly affects ADECA-funded broadband infrastructure projects by reducing their costs. The exemption covers equipment like cables, antennas, and routers used for broadband services or internet access, but excludes personal devices such as smartphones and consumer routers. The tax exemption applies from September 1, 2026, through August 31, 2029, and does not extend to local county or municipal taxes unless specifically approved.

HB 65 proposes a constitutional amendment to allow Franklin County residents aged 65 or older to claim a property tax exemption on their primary residence. To qualify, seniors must own the home as their principal residence for at least five years and meet income requirements (not detailed in the bill text). The exemption freezes the property’s assessed value from the year before claiming it, but does not affect homestead exemptions or millage rate changes. The amendment requires voter approval and would take effect for tax years beginning October 1, 2027, with claims due by December 31, 2027. This is a proposed change to the state constitution, not yet law.

HB 64 proposes a constitutional amendment for Colbert County to allow residents aged 65+ to claim a property tax exemption on their primary residence. To qualify, a homeowner must own a single-family home as their principal residence for at least five years before claiming the exemption, and the exemption freezes the property's assessed value from the prior year. The exemption requires written application to the county revenue commissioner between October 1 and December 31, 2027, for the 2027 tax year, and remains valid as long as the homeowner continues living there. This would directly affect Colbert County seniors meeting these specific residency and ownership criteria.

HB 15 would exempt eyeglasses and contact lenses from Alabama's sales and use tax. Currently, these items are taxed under state law, but the bill would remove that tax obligation. This change would directly affect consumers purchasing optical aids and retailers selling them, as they would no longer pay or collect tax on these items. The bill amends Alabama Code Section 40-23-1 to add eyeglasses and contact lenses to the list of tax-exempt products.