NFIB Alabama Small Business Victories

Date: April 25, 2022

NFIB Alabama Small Business Victories

Here’s a look at some of NFIB’s victories in the 2021 session of the Alabama Legislature:

House Bills

Unemployment tax decrease (HB 1)

HB 1 by Rep. Steve Clouse – Appropriated $772 million in American Rescue Plan federal dollars including $79.5 million to the Unemployment Trust Fund. The deposit of the $79.5 million returned the Trust Fund to the pre-pandemic balance. Employers received a 29% reduction in unemployment taxes for shared costs. Act No. 2022-1

Business Personal Property Tax reduction and increases the threshold for submitting monthly sales tax payments (HB 82)

HB 82 by Rep. Danny Garrett-Provides an exemption of up to $40,000 in tangible business personal property from state ad valorem tax, beginning October 1, 2023. The bill will eliminate filings on a state level for about 75% of small business owners. Estimated annual tax savings of $4.37 million. Also, increases the threshold for submitting estimated monthly sales tax payments from $2,500 in state sales tax liability to $5,000. The increase will remove an estimated 2,467 sales tax licensees from the requirement of making monthly estimated payments. Raising the threshold will avoid filing and any penalties and interest when a business does not owe any monthly tax or a small tax liability. Estimated to save $5.5 million in the month immediately preceding passage of the bill. Act No. 2022-53

Education Budget appropriation for workforce training (HB 135)

HB 135 by Rep. Danny Garrett-Provides $15 million dedicated to workforce training and credentialing programs through the Alabama Community College System’s Innovation Center. The ACCS Innovation Center partners with industry/trade associations to develop rapid training programs to fill job openings at a rapid pace. The training programs are offered at no cost to participating individuals. Participants awarded the ACCS Credential are matched with employment opportunities. Act No. 2022-393

401k Tax Deduction (HB 162)

HB 162 by Rep. Lynn Greer-Allows individuals sixty-five and older to exempt up to $6,000 of taxable retirement income from state income tax. The legislation applies to any retirement income that is currently taxable. Act No. 2022-294

Standard Tax Deduction (HB 163)

HB 162 by Rep. Lynn Greer- Increase the threshold for the maximum dependent exemption from $20,000 to $50,000, the adjusted gross income floor for the optional standard deduction for taxpayers that are married filing jointly, head of family, and single from $23,000 to $25,500 and from $10,500 to $12,750 for taxpayers that are married filing separately; increase the standard deduction amount from $4,000 to $5,000 for taxpayers that are married filing jointly and from $2,000 to $2,500 for taxpayers that are married filing separate, head of family and single. Act No. 2022-297

COVID-19 Tax Exemption (HB 231)

HB 231 by Rep. Jim Carns-Changed the state tax code to ensure Alabama taxpayers who received the federal COVID-19 federal dollars would be tax free including the child tax credit and other special tax credits extended under the CARES Act. Estimated tax savings is $87 million. Act No. 2022-37

Business Privilege Tax (HB 391)

HB 391 by Rep. Steve Clouse-Reduces the annual minimum business privilege tax of $100 to $50 for the taxable year beginning after December 31, 2022 and provides for a full exemption from the minimum business privilege tax due for taxable years beginning after December 31, 2023. Estimated to provide tax relief for 230,000 small businesses. Annual tax savings for affected businesses is approximately $23,050 million annually. Act No. 2022-252

Senate Bills

Broadband Expansion (SB 123)

SB 123 by Sen. Clay Scofield-Increase the minimum service threshold for Internet speed, enter into nondisclosure agreements to protect provider-specific information, allow for all funds to be used to extend last-mile infrastructure, middle-mile, and line extension programs, and require 70 percent of funds to extend last-mile infrastructure in unserved areas. Act No. 2022-125

Broadband Expansion (SB 124)

SB 124 by Sen. Clay Scofield-Administer the broadband accessibility grant program to governmental and non-governmental entities for broadband services and the grant program to be distributed according to the statewide connectivity plan. Act No. 2022-138

Military Spouses licenses (SB 141)

SB 141 by Sen. Tom Butler-Revises the date for reciprocal occupational licensing boards to 30 days to accept an application for certification/license for military spouses. Extends the timeframe a temporary permit to practice is effective from 180 to 360 days. Adds reciprocity for spouses of individuals employed by the following: Dept. of Justice, FBI, U.S. Attorney’s office, ATF, DEA, US Marshall Service and Board of Optometry. Act No. 2022-92





Work Search Requirements (SB 224)

SB 224 by Sen. Arthur Orr-Will require claimants receiving a weekly unemployment check to search for work three (3) times weekly, currently the claimant is required to search for work once a week. In addition, audits will be conducted by the Al Department of Labor on claimants work search.

Act No. 2022-301


Business Delivery License change (SB 321)

SB 321 by Sen. Donnie Chesteen/Rep. Paul Lee-A business that rents or leases equipment will be required to purchase a business delivery license if the company delivers up to $10,000 annually of rental or leased equipment to a single taxing jurisdiction. If a customer picks up and returns leased or rented equipment, the business will not be required to produce records for a taxing jurisdiction. Currently, a business who leases or rents equipment is required to purchase a municipal business license for each city where leased or rented equipment is taken by a customer or the business.

Act No. 2022-372


Related Content: Small Business Victories | Alabama | State

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