SB352 Alabama 2011 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Co-Sponsors

Quinton RossLinda Coleman-MadisonBobby D. SingletonVivian Davis Figures

Session

Regular Session 2011

Title

Corporate income tax, taxable income to include any amounts in excess of federal domestic production activities deduction, Sec. 40-18-34 am'd.

Summary

SB352 would cap Alabama's corporate income tax deduction for the federal bonus depreciation at 50% of the property's adjusted basis, adding any excess back as Alabama taxable income.

What This Bill Does

It amends Section 40-18-34 to treat any bonus depreciation amount under federal law that exceeds 50% of the adjusted basis as income to be added back for Alabama tax purposes. This effectively reduces the Alabama deduction from the federal 100% bonus depreciation to 50%, increasing taxable income for some corporate filers. The change applies to taxable years beginning on or after January 1, 2011, and becomes law immediately after passage.

Who It Affects

• Corporate taxpayers in Alabama that use bonus depreciation on qualified property, who would see their Alabama deduction capped at 50% and may owe more state tax as a result.
• Alabama's revenue department (Department of Revenue) and state government, which would implement and enforce the new rule and potentially adjust tax collections.

Key Provisions

• Limit the Alabama deduction for bonus depreciation to 50% of the adjusted basis of qualified property; any amount deducted in excess of 50% would be added back to Alabama taxable income.
• The act becomes effective immediately after it is passed and approved by the Governor and applies to taxable 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