HB352 Alabama 2020 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2020

Title

Taxation, income tax rate for corporations further provided for, Alabama Business Tax Competitiveness Act, const. amend

Summary

HB352 would amend the Alabama Constitution to lower the corporate income tax rate to 4.75% and end the federal income tax deduction for corporations.

What This Bill Does

If approved, the amendment would change how Alabama taxes corporate income by setting the rate at 4.75% (subject to potential future reductions by the Legislature). It would also repeal the current deduction that allows corporations to subtract their federal income taxes paid or accrued when calculating Alabama taxable income. As a constitutional change, it would require voter approval in a statewide election to take effect.

Who It Affects

• Corporate taxpayers doing business in Alabama: they would face a 4.75% corporate income tax rate and would no longer be able to deduct federal taxes paid or accrued.
• State revenue and public services: changing the corporate tax rate and removing the federal tax deduction could alter the money available to fund state programs and services.

Key Provisions

• The corporate income tax rate for corporations shall be four and three-quarters percent, unless reduced by the Legislature.
• The federal income tax deduction for corporate taxpayers shall be repealed.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments