SB350 Alabama 2011 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

Vivian Davis FiguresGeorge M. “Marc” KeaheyBobby D. SingletonPriscilla DunnLinda Coleman-MadisonRoger Bedford, Jr.Quinton RossHank SandersRodger SmithermanWilliam “Bill” M. BeasleyJerry L. Fielding

Session

Regular Session 2011

Title

Oil and gas, taxation, depletion allowance altered, limited to federal depletion allowance, Sec. 40-18-35 am'd.

Summary

SB350 would cap Alabama's oil and gas depletion deduction at the federal depletion allowance, starting with tax years after 2011.

What This Bill Does

The bill amends Section 40-18-35 to limit the state depletion allowance for oil and gas to the amount allowed by the federal depletion allowance. This means taxpayers in Alabama can deduct no more for depletion at the state level than the federal limit allows. The change would take effect for tax years beginning after December 31, 2011.

Who It Affects

• Oil and gas producers and other taxpayers who deduct depletion for oil and gas in Alabama; their state depletion deduction would be reduced to match the federal limit, potentially increasing their Alabama taxable income and state taxes.
• Alabama state government and the Department of Revenue, which would implement and enforce the new cap and potentially see changes in state tax revenue.

Key Provisions

• Cap the state depletion allowance for oil and gas to the federal depletion allowance under Section 40-18-35.
• Effective for tax years beginning after December 31, 2011 (tax years 2012 and onward).

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

Subjects

Oil and Gas