HB400 Alabama 2016 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Chris BlackshearRepresentative
Republican
Session: Regular Session 2016
Title: Financial institution excise tax, tax credits, use only to offset state portion of tax and not county or municipal tax
Summary: HB400 ensures tax credits used to offset the financial institution excise tax only reduce the state portion, not the distributions to counties or municipalities.
What This Bill Does
It limits any tax credits for financial institutions against the financial institution excise tax to reducing the state portion of that tax liability. It prevents those credits from lowering the share of the tax that goes to counties and municipalities, except for credits allowed by Section 40-16-8, which can offset local distributions. It applies to tax credits enacted before, on, and after the act’s effective date and takes effect immediately after governor approval.

Who It Affects
Financial institutions owed the excise tax: credits will reduce the state portion of their liability rather than reducing distributions to local governments.
Counties and municipalities: their distributions from the excise tax would not be reduced by most credits; only Section 40-16-8 credits can reduce those local distributions.
State and local tax authorities: overall state tax liability may be reduced by credits, while local distributions are protected except for specific credits.

Key Provisions
Any tax credit against the financial institution excise tax is applied only to the state portion of the tax liability and may not offset the distributions to counties or municipalities (40-16-6).
Distributions to counties or municipalities may only be reduced by credits allowed under Section 40-16-8.
The rule applies to tax credits enacted before, on, or after the act's effective date.
The act becomes effective immediately after passage and governor approval.

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