SB249 Alabama 2020 Session

Summary

Primary Sponsor

Dan RobertsSenator

Republican

Session

Regular Session 2020

Title

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

Summary

SB249 would change Alabama's constitution to lower corporate income tax to 4.75% and remove the federal income tax deduction for corporations.

What This Bill Does

It would amend Amendment 212 (now Section 211.03) to set the corporate income tax rate at four and three-quarters percent for calendar year 2021 and thereafter, unless the Legislature reduces it. It would repeal the federal income tax deduction for corporate taxpayers, so federal taxes paid or accrued could not be deducted when calculating Alabama corporate tax (for foreign corporations, the deduction would be proportional to Alabama-source income). The changes apply to both Alabama-based and foreign corporations doing business in the state.

Who It Affects

• Corporate taxpayers doing business in Alabama (including both domestic and foreign corporations) would be taxed at 4.75% and would no longer be able to deduct federal income taxes.
• Alabama state government and its revenue budget would be affected by changes in tax collections resulting from the new rate and the elimination of the deduction.

Key Provisions

• The corporate income tax rate shall be four and three-quarters percent for calendar year 2021 and thereafter, unless reduced by the Legislature.
• The federal income tax deduction for corporate taxpayers is repealed (for foreign corporations, the deduction is limited to income derived from sources within Alabama).

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