SB224 Alabama 2017 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2017

Title

Compensation, provide compensation to a garnishee in the form of a tax credit, Sec. 6-10-7 am'd.

Summary

SB224 would let courts give garnishees a tax credit of up to $25 every time they withhold funds under a garnishment.

What This Bill Does

The bill amends Section 6-10-7 to allow a court to grant a tax credit of up to $25 for each withholding event by a garnishee. The credit is provided at the court’s discretion and is in addition to the existing garnishment rules, which remain in place. The overall garnishment framework (75% wage exemption, 25% withheld, and reporting requirements) is not changed by this bill.

Who It Affects

• Garnishees (employers or others who withhold funds) may receive a tax credit up to $25 for each garnishment withholding, as determined by the court.
• Defendants/debtors whose wages are garnished will continue to be governed by the existing rules (75% exemption and 25% withholding) and are not subjected to changed withholding amounts by this bill.

Key Provisions

• Amends Section 6-10-7 to authorize a tax credit for garnishees up to $25 for each time they withhold funds under a garnishment.
• The court may grant the credit at its discretion; the credit is received by the garnishee in the form of a tax credit.
• The act preserves the existing garnishment framework, including the 75% wage exemption and the 25% withholding rules.
• Effective date: becomes law on the first day of the third month after passage and approval by the Governor.

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

Subjects

Garnishments