Check out these four bills of interest to Alabama small business owners.
Alabama Legislature Working on Tax Help
With the 2016 regular session well past the halfway point, there are a variety of bills still in play that would benefit small businesses in Alabama. Here’s a look at their status.
House Bill 109—HSA Tax Deduction
Under current state law, taxpayers don’t have an option for deducting contributions made to a health savings account, although this is allowed under federal income tax law. HB109 would change that. Under the legislation, Alabamians would be allowed to deduct contributions made to an HSA from their state income tax returns, starting with contributions made on or after Jan. 1, 2018. HB109 passed the House and, at this writing, is on the Senate Calendar for final passage.
House Bill 36 and Senate Bill 90—Business Tax Credits
These bills, both employer-related tax credit proposals, are poised for final passage, the Birmingham Business Journal recently reported.
HB36—the Small Business Jobs Act—would give business owners with 75 or fewer employees a $1,500 tax credit for each new hire that earns at least $40,000. If the new employee is an unemployed veteran, the business owner would be eligible for an additional $1,000 tax credit.
SB90 would provide a $1,000 tax credit to employers for each apprentice they hire and train.
Senate Bill 278—Tax Rate Notification
SB278 would give business owners more time to adapt to a local tax change: 60 days, up from 30. At this writing, the bill is up for debate on the Senate Calendar.