Budget & Taxes

in committee · Alabama · House Mar 31, 2026

HB 647: Taxation; to eliminate the sales tax on food over a four year period

This bill proposes to gradually eliminate the state sales tax on food in Alabama over a four-year period, starting with a one-half percent reduction on September 1, 2026, and continuing annually until food becomes fully exempt by September 1, 2029. Currently, food is taxed at a reduced rate of two percent compared to the general four percent sales tax rate, and this legislation would phase out that remaining tax. The bill also grants counties and municipalities the authority to choose to exempt food from local sales and use taxes. This change would directly affect consumers purchasing food and businesses that sell food products within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill eliminates sales tax on food, providing tax relief to consumers and reducing burden on households, particularly lower-income families.90% confidence

Sub-Topics Procurement Sales Tax

Track

in committee · Alabama · House Mar 3, 2026

HB 553: Tourism; creates a grant program for boosting state tourism economies affected by global trade disruptions and foreign travel slowdowns; creates a competitive grant program to fund tourism-related infrastructure projects; creates international and domestic marketing campaigns; establishes the Tourism Sector Economic Monitoring Council

This bill creates the Tourism Revenue Recovery and Global Promotion Act to support Alabama's tourism industry in response to global trade disruptions and travel slowdowns. It establishes a grant program for eligible tourism businesses like hotels and attractions to help with staff retention, facility updates, and marketing, with no single entity receiving more than $100,000. The legislation also funds international marketing campaigns to attract visitors from affected countries, supports domestic advertising for in-state travel, and provides grants for tourism infrastructure improvements like visitor centers and trail enhancements. Additionally, it creates a Tourism Sector Economic Monitoring Council composed of five appointed members who will track economic trends and advise state leaders on tourism strategies.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates grant programs and funding for tourism infrastructure and marketing, directly increasing state budget allocation for economic development and tourism recovery.85% confidence

Track

in committee · Alabama · House Mar 10, 2026

HB 596: Economic Development; small towns, programs established to fund businesses, reuse of properties, and other grants, administered by Alabama Department of Economic and Community Affairs; tax credit established

This bill establishes the Main Street Revival Act to support economic development in small Alabama towns with populations under 25,000. It creates four grant programs administered by the Alabama Department of Economic and Community Affairs to help businesses start or expand, preserve historic commercial buildings, support temporary retail spaces and business mentorship, and assist local governments with updating zoning and land use regulations. Additionally, the bill creates a 25 percent income tax credit for property owners who renovate eligible vacant or underutilized commercial properties. Funding for these programs depends on future legislative appropriations, and the law takes effect on January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes grant programs and tax credits to fund economic development in small towns, directly advancing budget and taxation through new funding mechanisms.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Tags Economic Development Small Business

Track

in committee · Alabama · House Mar 10, 2026

HB 608: Income Tax; to create the R&D Tax Credit Enhancement Act

This bill creates the R&D Tax Credit Enhancement Act to provide income tax credits for organizations in Alabama that invest in research and development, specifically targeting health sciences, biotechnology, and university-based research. The program would offer a 10% tax credit on qualified research expenses, with higher 15% credits for collaborative research involving in-state academic institutions and up to $250,000 in refundable or transferable credits for startups and small businesses with fewer than 50 employees. The Department of Revenue would administer the program, which is capped at $30 million annually, and publish annual reports on the number of credits issued and the sectors receiving support. The bill would apply to tax years beginning on or after January 1, 2027, and would require a streamlined application process for eligible organizations to claim the credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits for R&D investments, promoting economic development and funding innovation through tax incentives.85% confidence ✓ TechnologySupports TechnologyBill provides tax credits for R&D investments in health sciences, biotechnology, and university research, directly supporting technology innovation and development.75% confidence

Sub-Topics Income Tax Tax Credits

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signed · Alabama · House Mar 19, 2026

HB 537: Monroe County; senior property tax exemption, authorized; constitutional amendment

This bill proposes a constitutional amendment to allow Monroe County residents aged 65 and older to claim a senior property tax exemption on their primary single-family home. The exemption would freeze the property's assessed value at the level from the year before the exemption begins, protecting owners from future property value increases while still allowing taxes to rise if the home is expanded or improved. To qualify, homeowners must have lived in the property as their main residence for at least five years before applying, and the exemption can be claimed starting October 1, 2027. The measure requires voter approval through an election before it becomes law, and it would not affect existing homestead exemptions or changes to local tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for seniors by freezing assessed property values, reducing tax burden for older homeowners while maintaining fiscal accountability through expansion tax provisions.85% confidence ✓ HousingSupports HousingBill provides property tax exemption for seniors, reducing housing costs for elderly homeowners and supporting affordable housing access.85% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

in committee · Alabama · House Mar 10, 2026

HB 600: Department of Workforce; required to establish various programs to support trade programs through grants and stipends; recognize military training for trade certification

This bill requires Alabama's Department of Workforce to create several programs aimed at supporting skilled trade training, primarily for rural residents and employers. It would provide full tuition coverage for rural students in high-need trade programs, offer grants to rural employers who sponsor apprenticeships, and give stipends to trainees for purchasing tools or commuting costs. The legislation also establishes a statewide outreach campaign to promote trade careers and creates a system to recognize prior work experience and military training toward trade certifications. These programs would be funded through the state's general fund, subject to legislative appropriation, and would take effect on July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes funded programs for trade training with grants and stipends, increasing government spending on workforce development and rural economic support85% confidence ✓ EducationSupports EducationBill provides funding for trade education programs, grants for apprenticeships, and stipends for trainees, expanding educational access and support for skilled trade training.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill establishes programs to fund trade training, provide grants for apprenticeships, and offer stipends to workers, directly supporting workforce development and employment opportunities.95% confidence ✓ VeteransSupports VeteransBill recognizes military training for trade certification, directly supporting veterans' employment and skills recognition in skilled trades.75% confidence

Sub-Topics Appropriations Procurement State Budget Career & Technical Education Higher Education Apprenticeships Professional Licensing Workforce Development Veteran Employment

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signed · Alabama · House Mar 10, 2026

HB 507: Covington County; senior property tax exemption, authorized; constitutional amendment

This bill proposes a constitutional amendment to allow Covington County residents aged 65 or older to claim a property tax exemption on their primary home. To qualify, homeowners must have owned and lived in the home as their principal residence for at least five years before applying. The exemption freezes the property's assessed value at the 2026 level (for claims starting October 2027), preventing tax increases due to rising home values, though local tax rate changes still apply. Homeowners must submit a written application to the county revenue commissioner between October 1 and December 31, 2027, to activate the exemption.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors, reducing tax burden and offering relief for fixed-income residents.90% confidence

Sub-Topics Property Tax Tax Incentives

died · Alabama · Senate Apr 7, 2026

SB 245: Income Taxes, tax deduction for members of a Health Care Sharing Ministry for certain health care sharing expenses

SB 245, the Health Care Sharing Ministries Tax Parity Act, allows members of health care sharing ministries to deduct their contributions toward qualified health care expenses from their Alabama state income tax, starting January 1, 2027. It directly affects individuals who are members of these ministries, treating their contributions similarly to health insurance premiums and health savings account expenses for tax deduction purposes. The bill requires taxpayers to claim the deduction on their state tax return and provides that contributions received for medical expenses (without a prior deduction) are not taxable income. This legislation aims to create tax parity between health care sharing ministries and traditional health insurance for Alabama taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new tax deduction for health care sharing ministry members, providing tax relief similar to health insurance deductions, advancing tax parity for this group.90% confidence ✓ HealthcareSupports HealthcareBill allows tax deductions for health care sharing ministry contributions, treating them like insurance premiums to expand coverage options and improve affordability for members.95% confidence

Sub-Topics Income Tax Insurance

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in committee · Alabama · House Feb 12, 2026

HB 445: Relating to gross income; to amend Section 40-18-14, Code of Alabama 1975; to exclude difficulty of care payments from gross income

HB 445 amends Alabama's tax code to exclude "difficulty of care payments" from taxable gross income. Specifically, it adds a new exemption for payments received by individual care providers under Medicaid Home and Community-Based Services Waiver programs. This change directly affects care providers who receive these payments for services to Medicaid participants. The bill modifies Section 40-18-14 of the Alabama Code to ensure these payments are not counted toward an individual's state income tax calculation, aligning with federal tax treatment under 26 U.S.C. § 131.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes Medicaid care provider payments from taxable income, providing tax relief to individuals and providers under Medicaid Home and Community-Based Services programs.95% confidence ✓ HealthcareSupports HealthcareExcludes Medicaid care provider payments from taxable income, strengthening provider compensation under public health programs without restricting access.92% confidence

Sub-Topics Income Tax Medicaid

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signed · Alabama · Senate Apr 17, 2026

SB 317: Alabama Commission on the Evaluation of Services recreated as a legislative department, duties revised and clarified, Legislative Committee on the Evaluation of Services created

SB 317 recreates Alabama's Commission on the Evaluation of Services as a formal legislative department and establishes a new Legislative Committee to oversee it. The bill requires state agencies receiving direct state funding to provide data and develop evaluation plans for new programs or major program expansions (defined as a 25%+ budget increase or significant changes to service delivery). It mandates agencies to create logic models and track specific outcome metrics, with the commission publishing evaluation standards and reviewing agency reports. This directly affects all state departments, agencies, and institutions that receive state appropriations, requiring them to submit program evaluations annually.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires agencies to track outcomes for major budget increases (25%+), promoting fiscal accountability and efficient spending management per legislative oversight.85% confidence