SB355 Alabama 2016 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2016

Title

Insurance, premium tax on insurance premiums, credits for certain employees altered, Alabama real property investment credit eliminated, insurance office facility credit eliminated, Sec. 27-4A-3 am'd.

Summary

SB355 would end the real property investment credit and replace the insurance office facilities credit with an employee-based credit for insurers operating in Alabama.

What This Bill Does

It eliminates the Alabama Real Property Investment Credit from premium taxes. It replaces the office facilities credit with a credit based on the number of full-time insurer employees in Alabama, with a tiered structure and a cap. The total office facilities credit for a carrier (including affiliates) is limited to 2,000,000 dollars per year and cannot exceed 1% of the insurer's Alabama premiums. Premium taxes remain the base and credits are applied to them, with quarterly payments and reconciliation.

Who It Affects

• Insurance carriers operating in Alabama (domestic and foreign) and their affiliates, who would receive employee-based premium tax credits and manage credit allocations.
• Insurers with real property investments in Alabama, who would lose the real property investment credit.

Key Provisions

• Eliminates the Alabama Real Property Investment Credit from premium taxes.
• Creates the Alabama Insurance Offices Facilities Company Employees Credit, based on the number of full-time Alabama-based employees and with a tiered credit structure.
• Caps the total Alabama office facilities credit at 2,000,000 per tax year per carrier (including affiliates) and limits the office credit to 1% of Alabama premiums.
• Allows aggregation of premiums, office facilities credits, and Alabama real property investments across an insurer and its affiliates, with credit allocation at the insurer's discretion.
• Credits may be claimed for up to ten years; eligibility includes employees working at least 30 hours per week in Alabama.
• Effective date: January 1, 2017.

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