NFIB State Director Rosemary Elebash released the following statement today in response to Governor Ivey’s decision to sign House Bill 1, legislation that appropriates $772 million the state received from the federal government under the American Rescue Plan Act (ARPA):
“Our members are grateful to the legislature for passing House Bill 1 and to Governor Ivey for quickly signing it into law.
“House Bill 1 will go a long way toward addressing many of the challenges Alabamians have faced the past couple of years because of the COVID-19 pandemic.
“Our small business members are especially grateful for a provision that sets aside $79.5 million to return the state’s unemployment trust fund to pre-pandemic levels. So many people lost their jobs because of the pandemic that the unemployment trust fund was nearly depleted. By signing H.B. 1 into law, Governor Ivey replenishes the trust fund and eliminates any pressure on legislators to raise taxes on small businesses and other employers.
29% cut in 2022 UI taxes
Following today’s signing, Alabama Department of Labor Secretary Fitzgerald Washington announced that most Alabama employers will see a 29% tax cut in their 2022 unemployment insurance taxes.
Had the legislature not acted, employers would have experienced a 3% unemployment insurance tax increase for 2022. Additionally, because of added ARPA funds and CARES Act funds added last year, Alabama has dropped into a lower tax schedule.
Broadband access
In addition to shoring up the state’s unemployment trust fund, H.B. 1 set aside $51 million for broadband expansion.
Elebash said, “Just as businesses couldn’t compete in the 20th century without a telephone, businesses in the 21st century need a fast, affordable, always-on internet connection. Broadband access isn’t really an issue in large cities, but there are still places in rural Alabama that remain isolated because they don’t have it. H.B. 1 addresses the issue and will help local businesses and communities stay competitive.”