SB144 Alabama 2020 Session

Summary

Primary Sponsor

Andrew JonesSenator

Republican

Session

Regular Session 2020

Title

Income tax deduction, deduction based on federal income tax paid, limit established, const. amend.

Summary

SB 144 would cap the federal income tax deduction on Alabama state returns and exempt food from state sales tax, via a constitutional amendment that would go to voters.

What This Bill Does

For resident taxpayers, it sets a cap on the federal income tax deduction: $6,000 for single, head of household, and married filing separately filers, and $12,000 for married filing jointly, starting with tax years after 2020. For nonresident taxpayers, it continues to allow a deduction only for federal tax paid on income sourced within Alabama. Starting October 1, 2020, gross receipts from the sale or use of food would be exempt from state sales and use taxes, while local governments would still collect their local sales taxes on food. The change is a constitutional amendment and would take effect only if approved by voters in Alabama.

Who It Affects

• Alabama resident individual income taxpayers who deduct federal taxes on their state returns (affected by the new deduction caps).
• Consumers who buy food in Alabama (state sales tax on food would be eliminated, but local taxes would remain).
• Local governments in Alabama (continue to collect local sales taxes on food and adjust to the absence of state tax on food).

Key Provisions

• Amends Amendment 225 (Section 211.04) to cap federal income tax deductions for individual taxpayers: up to $6,000 for single, head of household, and married filing separately filers; up to $12,000 for married filing jointly, for tax years beginning after 2020.
• Exempts gross receipts from the sale or use of food from state sales and use taxes starting October 1, 2020; local sales taxes on food remain at the local rate.
• Defines 'FOOD' using the SNAP program definition and requires the Legislature to update the definition by general law if SNAP changes; outlines the election process for approving the amendment.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments