HB1 Alabama 2010 Session

Summary

Primary Sponsor

Johnny Mack Morrow

Democrat

Co-Sponsors

Mary MooreJames E. BuskeySteve HurstWilliam “Bill” M. BeasleyLesley VanceBill J. DukesLeaman M. FiteThomas JacksonAlan HarperMarcel BlackSeth HammettMerika ColemanPatricia ToddJohn RobinsonJames C. FieldsJack PageWilliam E. ThigpenButch TaylorHenry A. WhiteKen GuinTommy ShererRichard LindseyMike MillicanJody LetsonMike CurtisRandy HinshawTerry SpicerJeff McLaughlinJoseph C. MitchellBarbara Bigsby BoydJames L. ThomasArtis McCampbellLaura HallTammy IronsRonald GrantlandBetty Carol GrahamLocy BakerYvonne KennedyOliver RobinsonChris EnglandEarl F. HilliardThad McClammyRalph HowardPebblin W. WarrenJames O. GordonDemetrius C. NewtonYusuf SalaamJohn F. Knight Jr

Session

Regular Session 2010

Title

State income tax, federal deduction limited for individual taxpayers, state sales tax on food removed, Amendment 225 (Section 211.04, Recompiled Constitution of Alabama of 1901, as amended), repealed, const. amend.

Summary

HB1 would repeal Amendment 225, limit the state deduction for federal taxes on Alabama personal income tax, and exempt most food from state sales tax (with local taxes still applying).

What This Bill Does

First, it repeals Amendment 225 from the Alabama Constitution. Second, it changes how federal income taxes paid or accrued can be deducted on Alabama returns: full deduction for single, head of household, or married filing separately with AGI up to $50,000, and for married filing jointly with AGI up to $100,000; beyond those thresholds, the deduction is reduced by 1% per $1,500 of AGI over the threshold for non-MFJ statuses and by 1% per $3,000 of AGI over $100,000 for MFJ. Third, starting January 1, 2011, the sale of food would be exempt from state sales tax, while local governments would continue to levy food taxes at the same rate; food is defined per the federal Food Stamp Act and excludes candy and soft drinks, with the Legislature authorized to redefine food by general law if the federal definition changes.

Who It Affects

• Individual taxpayers in Alabama (across filing statuses) whose state income tax deduction for federal taxes would be determined by the new AGI-based rules.
• Consumers who buy food in Alabama, since most food would be exempt from the state sales tax while local taxes on food remain, subject to the defined food category and exclusions.

Key Provisions

• Repeal Amendment 225 (Section 211.04) from the Constitution.
• Establish a tiered deduction for federal income taxes paid or accrued on Alabama individual income tax returns, with full deduction up to $50,000 AGI for most statuses and up to $100,000 AGI for married filing jointly; deductions above those levels are reduced by 1% per $1,500 of AGI over the threshold (non-MFJ) or 1% per $3,000 of AGI over $100,000 (MFJ).
• Begin exempting the sale of food from state sales tax starting January 1, 2011, while local food taxes remain at their current rate; define food per the federal Food Stamp Act and exclude candy and soft drinks; if the federal definition changes, the Legislature will establish a new definition by general law.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments