SB297 Alabama 2024 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular Session 2024

Title

Precious Metal Bullion, exchange excludes net gain from gross income, grants net capital loss deduction from gross income

Summary

SB297 would exclude net capital gains from the exchange of precious metal bullion from Alabama gross income and allow net capital losses from bullion exchanges as a deduction, while also creating a temporary overtime pay exemption with employer reporting requirements, effective January 1, 2025.

What This Bill Does

It excludes net capital gains from exchange of precious metal bullion from state gross income and allows a deduction for net capital losses from bullion exchanges. It defines precious metal bullion as coins, bars, or rounds primarily refined gold, silver, platinum, or palladium, valued by weight, purity, and content. It creates a temporary overtime pay exemption for full-time hourly workers’ overtime (over 40 hours per week) for tax years beginning after 12/31/2023 and ending before 6/30/2025, and requires employers to report overtime compensation data to the Department of Revenue with specified deadlines and sharing requirements with state fiscal agencies.

Who It Affects

• Alabama individual taxpayers who realize net capital gains or losses from exchanging precious metal bullion; gains would be excluded from gross income, losses deductible.
• Full-time hourly wage-paid employees who earn overtime pay for hours over 40 per week (temporary exemption) and their employers who must report overtime compensation data to the Department of Revenue.

Key Provisions

• Excludes net capital gains derived from the exchange of precious metal bullion from gross income for individuals.
• Allows a deduction for net capital losses derived from the exchange of precious metal bullion from gross income.
• Defines precious metal bullion as coins, bars, or rounds containing primarily refined gold, silver, platinum, or palladium, valued primarily by weight, purity, and content.
• Provides a temporary exemption from gross income for overtime compensation paid to full-time hourly wage-paid employees for work over 40 hours per week, for tax years beginning after 12/31/2023 and ending before 6/30/2025.
• Requires employers to report overtime compensation data to the Department of Revenue (total amount and number of employees) with specified reporting schedules, and for the data to be shared with the Legislative Services Agency-Fiscal Division and the Department of Finance.
• Effective date: January 1, 2025.

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

Subjects

Taxation & Revenue