HB476 Alabama 2015 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

Regular Session 2015

Title

Income tax, Alabama Individual Income Tax Reform Act of 2015, subject to repeal of federal income tax credit, increases deductions and creates State Earned Income tax credit, Secs. 40-18-15, 40-18-19 am'd.

Description

Under current law, the state levies an income tax upon all residents of the state and upon all nonresidents who receive income from Alabama sources. Taxpayers are allowed standard deductions and personal exemptions in computing income subject to the tax.

This bill proposes the Alabama Individual Income Tax Reform Act of 2015. This bill, which would be contingent upon the ratification of a constitutional amendment to repeal the deduction of federal income tax payments on Alabama income tax returns, would increase the standard deductions and personal exemptions allowed for Alabama income tax purposes to the amounts allowed for federal income tax purposes.

This bill also creates a state earned income tax credit.

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Subjects

Taxation