HB61 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gregory Canfield
Republican
Co-Sponsors: Paul W. Lee April Weaver Barry Moore Ed Henry Mike Hubbard Wes Long Richard Baughn Becky Nordgren Mac Buttram Kurt Wallace Donnie Chesteen John Merrill Ken Johnson Dan Williams William Roberts Victor Gaston Jack Williams Alan Baker Jim McClendon Steve Clouse Duwayne Bridges Howard Sanderford Phil Williams Greg Wren Allen Treadaway Ron Johnson Kerry Rich Terri Collins Jim Patterson
Session: Regular Session 2011
Title: Income tax, qualifying employers and qualifying employees authorized tax deductions for 100 percent of amounts paid for health insurance premiums, Sec. 40-18-15.3 am'd.
Summary: HB61 would allow qualifying Alabama employees and small employers to deduct 100% of health insurance premiums from state income taxes.
What This Bill Does
The bill amends Section 40-18-15.3 to add a 100% deduction from Alabama gross income for health insurance premiums paid by qualifying employees, and a 100% deduction for health insurance premiums paid by qualifying employers on behalf of qualifying employees. It defines qualifying employees as Alabama residents who earn no more than $50,000 in wages and report no more than $75,000 of Alabama-adjusted gross income ($150,000 if married filing jointly); qualifying employers are those with fewer than 25 employees. The 100% deductions apply in addition to any other deductions and start for tax years after December 31, 2008 and 2010, with the measure becoming effective immediately after passage and the governor's approval.

Who It Affects
Qualifying employees: Alabama resident workers who meet income restrictions and participate in employer-provided health insurance plans; they would get a 100% deduction for premiums they pay.
Qualifying employers: small employers (fewer than 25 employees) that pay health insurance premiums for qualifying employees; they would get a 100% deduction for those premiums when computing Alabama taxable income.

Key Provisions
Defines qualifying employees and qualifying employers for the deduction rules.
Employee deduction: allows 100% of health insurance premiums paid by the employee to be deducted from Alabama gross income (in addition to other deductions).
Employer deduction: allows 100% of health insurance premiums paid by the employer on behalf of qualifying employees to be deducted in computing Alabama taxable income.
Tax-year applicability: applies to tax years beginning after December 31, 2008 and 2010 (as indicated in the amended text).
Effective date: becomes effective immediately after passage and the governor's approval.
Conflict provision: repeals any laws that conflict with these changes.

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