Tax Incentive Health Insurance Premium Deduction in Alabama
Issue Overview: Cost and availability of health insurance is a continuing problem for small business owners. Legislation has been proposed by Gov. Bob Riley, along with NFIB/Alabama, that would provide a tax incentive for small business owners that provide health insurance for their employees. Businesses with 25 employees or fewer employees would be able to deduct twice the amount they pay for health insurance premiums from their state income taxes, while allowing qualified employees (incomes of $50,000 or below) of those employers to deduct the same amount from their individual income taxes.
NFIB Position: Ninety percent of NFIB members support a tax deduction for health insurance premiums.
Issue Status: HB 144 by Rep. Jay Love (Montgomery) has been introduced in the 2008 legislative session.
What to Do: Talk to your legislators and urge them to support HB 144.
