SB290 Alabama 2022 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Tom ButlerSenator
Republican
Co-Sponsors: Greg Albritton Gerald H. Allen Will Barfoot Donnie Chesteen Andrew Jones Steve Livingston Tim Melson Arthur Orr Randy Price Greg J. Reed Dan Roberts Clay Scofield Shay Shelnutt J.T. Waggoner April Weaver Tom Whatley
Session: Regular Session 2022
Title: Business privilege tax, minimum business privilege tax for taxable years beginning after December 31, 2022, reduced a full exemption on amounts due of $100 or less for taxable years beginning after December 31, 2023, Section 40-14A-22 am'd.
Summary: SB290 lowers the minimum Alabama business privilege tax and eventually eliminates it for most taxpayers.
What This Bill Does
It amends Section 40-14A-22 to reduce the minimum tax from $100 to $50 for taxable years starting after December 31, 2022 (the 2023 tax year). For taxable years starting after December 31, 2023, eligible taxpayers would be fully exempt from the minimum tax and the related filing requirement, with an exception for those subject to Section 20-2A-80. The general tax structure based on net worth remains, and the Department of Revenue may issue implementing rules. Financial-institution-group minimum taxes are governed by a separate set of rules and are not described as being changed by this bill.

Who It Affects
Corporations, business trusts, limited liability entities, and disregarded entities doing business in Alabama would see a reduced minimum tax (from $100 to $50) for 2023, and potentially no minimum tax starting in 2024.
Businesses subject to the 20-2A-80 provision (Act 2021-450) are not eligible for the full exemption in 2024 and may still have tax obligations under that law.
Financial institution groups have their own minimum tax calculations under a separate provision and are not defined by these changes to the general minimum tax.

Key Provisions
Reduces the minimum business privilege tax to $50 for taxable years beginning after December 31, 2022.
Provides a full exemption from the minimum tax for taxable years beginning after December 31, 2023, with the exemption not applying to those subject to Section 20-2A-80 (Act 2021-450).
Maintains the existing net-worth-based tax rates, maximums, and related provisions for the general tax structure outside the minimum tax changes.
Allows the Department of Revenue to adopt rules for implementing the act.
Effective date: the act becomes law on the first day of the third month after it passes and is approved by the Governor.

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