Alabama HB527: Individual income taxes; deduction for qualified overtime income established.

What the bill says

An Act, Relating to taxes; to amend Section 40-18-15, Code of Alabama 1975, to establish an individual income tax deduction for qualified overtime compensation equal to the amount of qualified overtime compensation received during the taxable year, not to exceed one thousand dollars ($1,000) per taxpayer; to suspend the state portion of the sales and use taxes on food for a two-month period; and to make nonsubstantive, technical revisions to update existing code language to current style.

From the enrolled text:

An Act, Relating to taxes; to amend Section 40-18-15, Code of Alabama 1975, to establish an individual income tax deduction for qualified overtime compensation equal to the amount of qualified overtime compensation received during the taxable year, not to exceed one thousand dollars ($1,000) per taxpayer; to suspend the state portion of the sales and use taxes on food for a two-month period; and to make nonsubstantive, technical revisions to update existing code language to current style. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Section 40-18-15, Code of Alabama 1975, is amended to read as follows: "§40-18-15 (a) No deduction shall be allowed for any losses, expenses, or interest deferred or disallowed pursuant to U.S.C. § 267 or for any cost required to be capitalized in accordance with 26 U.S.C. § 263A; otherwise, there shall be allowed as deductions: (1) All ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, as determined in accordance with 26 U.S.C. § 162.; (2) Interest paid or accrued within the taxable year on indebtedness, limited to the amount allowable as an interest deduction for federal income tax purposes in the corresponding tax year or period pursuant to the provisions of 26 U.S.C. §§ Page tax year or period pursuant to the provisions …

Read the full official text

Sponsors

• Lomax, James (R, HD-020) · primary sponsor
• Garrett, Danny (R, HD-044)
• Rigsby, Phillip (R, HD-025)
• Crow, Norman (R, HD-063)
• Robertson, Chad (R, HD-040)
• Rehm, Rick (R, HD-085)
• Blackshear, Chris (R, HD-080)
• Whitt, Andy (R, HD-006)
• Paramore, Marcus (R, HD-089)
• Hulsey, Leigh (R, HD-015)
• Reynolds, Rex (R, HD-021)
• Lovvorn, Joe (R, HD-079)

Latest actions

1. April 17, 2026: Enacted
2. April 8, 2026: Delivered to Governor
3. April 8, 2026: Signature Requested
4. April 8, 2026: Enrolled
5. April 8, 2026: Ready to Enroll
6. April 8, 2026: Motion to Read a Third Time and Pass - Adopted Roll Call 1244
7. April 8, 2026: Third Reading in Second House
8. April 7, 2026: Read for the Second Time and placed on the Calendar
9. April 7, 2026: Reported Out of Committee Second House
10. March 31, 2026: Pending Committee Action in Second House

Votes

• Senate Roll Call #1244 (April 8, 2026): 32 yea, 0 nay, passed
• Senate Roll Call #1243 (April 8, 2026): 31 yea, 0 nay, passed
• House Roll Call #1064 (April 1, 2026): 103 yea, 0 nay, passed
• House Roll Call #1063 (April 1, 2026): 103 yea, 0 nay, passed
• House Roll Call #1062 (April 1, 2026): 103 yea, 0 nay, passed
• House Roll Call #1061 (April 1, 2026): 101 yea, 0 nay, passed

Common questions

What is HB527?

HB527 is a bill in the Alabama Legislature (2026 Regular Session): Individual income taxes; deduction for qualified overtime income established.

What does HB527 do?

In its own words: An Act, Relating to taxes; to amend Section 40-18-15, Code of Alabama 1975, to establish an individual income tax deduction for qualified overtime compensation equal to the amount of qualified overtime compensation received during the taxable year, not to exceed one thousand dollars ($1,000) per taxpayer; to suspend the state portion of the sales and use taxes on food for a two-month period; and to make nonsubstantive, technical revisions to update existing code language to current style.

What is the status of HB527?

Signed into law as of April 17, 2026. Latest action: Enacted (April 17, 2026).

Who sponsored HB527?

Lomax, James (R, HD-020), with 11 co-sponsors.

Where is the official record for HB527?

On the Alabama Legislature website: https://alison.legislature.state.al.us/instrument/2026RS/HB527