HB84 Alabama 2010 Session

Summary

Primary Sponsor

Jay Love

Republican

Co-Sponsor

Gerald H. Allen

Session

Regular Session 2010

Title

Income tax, employers, certain small businesses and employees, health insurance premiums, tax deduction under certain conditions, implementation only upon certain revenue growth in Education Trust Fund

Summary

HB84 would let small businesses and their workers get tax deductions for health insurance costs, with the deduction phased in over five years based on state revenue growth.

What This Bill Does

It adds new Alabama income tax deductions for health insurance premiums: qualifying employees can deduct premiums they pay, and qualifying employers can deduct premiums they pay on behalf of eligible employees. Deductions apply to health insurance plans provided through a qualifying employer and are limited to employees meeting certain wage and income thresholds. The additional deductions are phased in over five years, contingent on Education Trust Fund revenue growth of at least 3% each year, with a Finance certification process and Revenue implementation starting for tax years beginning January 1, 2011.

Who It Affects

• Qualifying employees: Alabama residents earning no more than $50,000 in wages and reporting no more than $75,000 in adjusted gross income (or $150,000 if married filing jointly) who participate in a qualifying employer's health plan; they receive a deduction for health insurance premiums they pay.
• Qualifying employers: small employers with fewer than 25 employees who can take a deduction for health insurance premiums they pay on behalf of qualifying employees as part of an employer-provided plan.
• State agencies (Finance and Revenue): responsible for certifying revenue growth in the Education Trust Fund and implementing the phased-in deductions once certified.

Key Provisions

• Creates new income tax deductions: qualifying employees may deduct health insurance premiums paid as part of an employer-provided plan, and qualifying employers may deduct premiums paid on behalf of qualifying employees; threshold definitions for who is qualifying are included.
• Implements a five-year phased-in schedule for the additional deductions, contingent on Education Trust Fund revenue growth of at least 3% in subsequent years, with Finance certification and Revenue implementation, effective for tax years beginning on or after January 1, 2011.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation