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
To amend Sections 40-18-15 and 40-18-19, Code of Alabama 1975, relating to income tax deductions and exemptions, to allow standard deductions equal to those allowed under federal income tax law; to allow personal exemptions equal to those allowed under federal income tax law; to create a state earned income tax credit; and to provide that this act shall become effective only upon ratification of a constitutional amendment to repeal the deduction of federal income tax payments on Alabama income tax returns.
|April 9, 2015||H||Read for the first time and referred to the House of Representatives committee on Ways and Means Education|
|Bill Text||HB476 Alabama 2015 Session - Introduced|