SB252 Alabama 2012 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Co-Sponsors

Scott BeasonGreg J. ReedBryan TaylorTom WhatleyMark Slade Blackwell

Session

Regular Session 2012

Title

Income tax deductions, carry forward capital loss for three years, Sec. 40-18-15 am'd.

Summary

SB252 would let Alabama residents carry forward capital losses for state income tax purposes for up to three years.

What This Bill Does

Currently, Alabama lets capital losses be deducted only in the year they occur. The bill changes this to allow a three-year carryforward from the year the loss is incurred. It also makes capital loss carrybacks for Alabama not operative and limits carryforwards to three years. The bill does not change net operating loss rules or other deductions.

Who It Affects

• Alabama residents who incur capital losses from investments, who would be able to carry those losses forward for up to three years on their Alabama tax returns.
• Taxpayers filing Alabama state income tax returns who expect to have future capital gains and could use the three-year carryforward to offset those gains.

Key Provisions

• Amends Section 40-18-15 to allow a three-year carryforward of capital losses for state income tax purposes.
• Capital loss carrybacks for Alabama purposes would not be operative, and the carryforward is limited to three years.
• Effective date: the act becomes law immediately after passage and governor approval.

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