The Alabama Legislature ended its 2026 Regular Session on April 9, wrapping up its final meeting in the current State House before moving to a new building in 2027.

Several measures important to small business owners passed during the session, with more details to come once the governor signs bills into law.

‘Penny’ Bill Brings Clarity to Cash Transactions

House Bill 545, sponsored by Rep. Norman Crow, allows businesses to round in-person cash transactions to the nearest five cents. The change follows the U.S. Treasury’s decision to stop minting pennies and gives businesses flexibility in how they handle cash payments.

The measure will take effect as soon as Gov. Kay Ivey signs it into law.

Credit Card Swipe Fee Fix Nears Final Approval

Another NFIB-supported measure, SB 221, is headed to Governor Ivey’s desk.

The bill ensures credit card processing fees are not included in sales tax calculations and allows businesses to charge a fee to recover those costs.

“Small businesses are already dealing with rising costs,” NFIB State Director Rosemary Elebash said. “This helps ensure they’re not taxed on money they never receive.”

Business License Reform Ends Double Taxation

Lawmakers also approved SB 304, which fixes a long-standing issue for contractors.

The bill ensures gross receipts from a single job are taxed only once for municipal business license purposes, rather than in multiple cities.

“This is a commonsense fix that brings fairness to the system,” Elebash said.

Looking Ahead

Governor Ivey is expected to sign these measures into law soon. We’ll share additional updates once the signing process is complete.