HB302 Alabama 2017 Session

Summary

Primary Sponsor

Tim WadsworthRepresentative

Republican

Session

Regular Session 2017

Title

Corporate income tax rate reduced to five percent, const. amend.

Summary

HB302 would amend Alabama’s Constitution to cut the corporate income tax rate from 6.5% to 6% beginning in 2019.

What This Bill Does

If approved, it lowers the state corporate income tax rate from 6.5% to 6% starting with the 2019 calendar year. It keeps the rule that federal taxes paid or accrued by corporations can be deducted when calculating Alabama taxes, with the deduction proportional for foreign corporations. The change would be written into the Constitution and would take effect automatically if approved, without needing extra legislation. An election will be held to let voters decide on the amendment.

Who It Affects

• Corporations operating in Alabama would pay a 6% tax on their net income instead of 6.5% beginning in 2019.
• Foreign corporations with income sourced to Alabama would have their federal tax deduction applied proportionally to their Alabama income.

Key Provisions

• Reduces the corporate income tax rate to 6% beginning with the 2019 calendar year.
• Preserves the deduction of all federal income taxes paid or accrued when computing Alabama taxable income, with proportional deduction for foreign corporations.
• The change is self-executing and requires no enabling legislation.
• Requires voter approval in a statewide election to adopt the constitutional amendment.

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

Subjects

Constitutional Amendments