SB159 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Co-Sponsors: Gerald O. Dial Clay Scofield Phillip W. Williams Paul Bussman Dick Brewbaker Shadrack McGill Greg J. Reed Jimmy Holley Scott Beason Arthur Orr Paul Sanford Trip Pittman Ben H. Brooks Del Marsh J.T. Waggoner Bryan Taylor
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: SB159 would let qualifying employees and qualifying employers deduct 100% of health insurance premiums from Alabama income tax, instead of 50%.
What This Bill Does
The bill increases the health insurance premium deduction from 50% to 100% for both eligible employees and eligible employers. Qualifying employees are Alabama residents who earn no more than $50,000 in wages and report no more than $75,000 of adjusted gross income ($150,000 if married filing jointly). Qualifying employers are small employers with fewer than 25 employees. The 100% deduction would apply to premiums paid by the employee and to premiums paid by the employer on behalf of qualifying employees, in addition to any other deductions they already receive.

Who It Affects
Qualifying employees: Alabama residents with income below the specified thresholds who pay health insurance premiums as part of an employer-provided plan.
Qualifying employers: small employers with fewer than 25 employees who pay health insurance premiums for qualifying employees.

Key Provisions
Amends Section 40-18-15.3 to allow a 100% deduction for health insurance premiums paid by qualifying employees and 100% of premiums paid by qualifying employers on behalf of qualifying employees.
Defines who qualifies as a qualifying employee and a qualifying employer (income/ wage thresholds and employer size).
Specifies that these 100% deductions apply in addition to other existing Alabama income tax deductions when calculating taxable income.

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