SB35 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Second Special Session 2015

Title

Insurance premium tax, credits against, repealed, Sec. 27-4A-3 am'd.

Summary

SB35 would repeal two premium tax credits for insurers in Alabama: the Insurance Offices Facilities Credit and the Real Property Investment Credit.

What This Bill Does

It repeals the Alabama Insurance Offices Facilities Credit and the Alabama Real Property Investment Credit from the premium tax provisions. Insurers would no longer be able to claim these credits against their premium tax liability. As a result, premium taxes owed by insurers could be higher, while state revenue would continue to flow to the same funds under existing allocation rules. The repeal would take effect for taxable years beginning after December 31, 2015.

Who It Affects

• Insurers operating in Alabama (both domestic and foreign) who would no longer be eligible to reduce their premium tax through these two credits.
• State finances (General Fund, Education Trust Fund, and Alabama Special Mental Health Trust Fund) which would receive premium tax revenue without the offsetting credits, subject to existing allocation rules.

Key Provisions

• Repeal of the Alabama Insurance Offices Facilities Credit, which previously allowed a credit against the premium tax for insurer offices in Alabama based on staff size and overall cap.
• Repeal of the Alabama Real Property Investment Credit, which previously allowed a credit against the premium tax based on the value of real property investments in Alabama, with detailed rules on eligibility, cost basis, and caps.
• Removal of these two credits from Section 27-4A-3(a)(3)(d) (the credit against premium tax), effectively eliminating the credits altogether.
• Effective for taxable years beginning after December 31, 2015.
• Other premium tax provisions, including tax rates, remittance schedules, and fund allocations, remain in place as described in the existing law.

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