HB42 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

Second Special Session 2015

Title

Insurance premium tax, credits against, repealed, Sec. 27-4A-3 am'd.

Summary

HB42 repeals two insurer premium tax credits (Insurance Offices Facilities Credit and Real Property Investment Credit) effective for tax years starting in 2016.

What This Bill Does

This bill removes the Alabama Insurance Offices Facilities Credit and the Alabama Real Property Investment Credit from the premium tax so insurers can no longer claim them. The rest of the premium tax structure remains the same, so insurers would owe higher taxes without these credits. Revenue that would have been reduced by the credits will instead be collected by the state under the existing tax distribution rules, with the same shares going to the General Fund and designated state funds.

Who It Affects

• Insurers operating in Alabama (domestic and foreign) who currently claim the Insurance Offices Facilities Credit or the Real Property Investment Credit would lose that tax relief.
• State finances, including the General Fund and specific education and mental health trust funds, which would receive more revenue from premium taxes due to the removal of the credits (funds receive their shares from the higher base tax).

Key Provisions

• Repeals the Alabama Insurance Offices Facilities Credit and the Alabama Real Property Investment Credit from the premium tax (27-4A-3).
• Effective for taxable years beginning after December 31, 2015 (2016 onward), with severability and related transitional provisions.

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

Subjects

Insurance