The 2016 legislative session ended with seven pro-small business bills signed into law and anti-business bills defeated:
Small Business Tax Credit. HB 36 by Rep. Kyle South (Fayette)
The bill allows businesses with fewer than 75 employees to claim a one-time tax credit of $1,500 for the hiring of a qualified new employee, applicable in the tax year for which employee completes 12 months of employment. In order to receive the credit, the business must pay the new hire at least $40,000 a year.
Right-to-Work Constitutional Amendment. HB 37 by Rep. Arnold Mooney (Birmingham)
If approved by voters on the 2016 November ballot, the amendment will affirm that Alabama is and will remain a right-to-work state. The amendment would establish that the right of a person to work in the state of Alabama cannot be denied based on membership or non-membership in a labor union.
Health Savings Accounts. HB 109 by Rep. Becky Nordgren (Gadsden), and SB 131 by Sen. Paul Sanford (Huntsville)
The legislation creates a state income tax deduction for contributions to a health savings account (HSA) and allows for deductions at the same level as for federal tax returns. Effective for the tax year 2018.
Minimum Wage. HB 174 by Rep. David Faulkner (Birmingham)
This prohibits cities and counties from establishing their own minimum wage.
Apprenticeship Tax Credit. SB 90 by Sen. Arthur Orr (Decatur), and HB 217 by Rep. Alan Baker (Brewton)
The bill authorizes a $1,000 tax credit for an apprentice up to four years, with a maximum of for apprentices at a time. Under the law, the definition of an apprentice is the same as defined by the U.S. Department of Labor. It caps the total credits statewide at $3 million and continues through 2021 unless extended by the legislature.
Third Party Audit and Collection Firms. SB 335 by Sen. Paul Sanford (Huntsville), and HB 375 by Rep. Paul Lee (Dothan)
Lawmakers passed pro-taxpayer legislation that changes the audit and collection practices of third-party firms that contract with cities and counties.
Income Tax Filing Date Conformity. SB 263 by Sen. Quinton Ross (Montgomery), and HB 251 by Rep. Anthony Daniels (Huntsville)
The legislation specifies that state income taxes are due on the same date as federal taxes.