HB192 Alabama 2025 Session

Summary

Primary Sponsor

Mark ShireyRepresentative

Republican

Session

2025 Regular Session

Title

International wire transfers; fee on wire transfers imposed with proceeds for ELL instructors; income tax credit for wire transfer fees paid, authorized; Securities Commission and Revenue Department to administer

Summary

HB192 would charge a 2% fee on outgoing international wire transfers, fund ESL instructors with the proceeds, and provide a nonrefundable Alabama income tax credit for customers who pay those fees, with administration shared by the Securities Commission and Revenue Department.

What This Bill Does

It requires money transmission businesses to collect a 2% fee on each outgoing international electronic wire transfer starting in 2026 and issue a receipt; the collected fees are deposited into the Education Trust Fund to hire English Language Learner instructors; it also creates a nonrefundable income tax credit for taxpayers equal to the fees paid, up to $5,000 per year, with rules for claiming and reporting.

Who It Affects

• Money transmission businesses licensed in Alabama: must collect the 2% fee, issue receipts, report transfers quarterly, and post public notices.
• Taxpayers who initiate international wire transfers: may qualify for a nonrefundable income tax credit equal to the fees paid, up to $5,000 per year, with receipts required to claim the credit.
• Local boards of education and ESL instructors: funding source to hire ESL instructors through the Education Trust Fund.
• Alabama Securities Commission and Alabama Department of Revenue: jointly administer and enforce the act, share necessary information, and issue rules and notices.
• Certain pass-through entities (e.g., some S corporations): eligible for the credit on a pro-rated basis.

Key Provisions

• Imposes a 2% fee on every outgoing international electronic wire transfer by money transmission businesses, starting January 1, 2026, with receipts provided to customers.
• Fees collected are remitted quarterly to the Alabama Securities Commission and deposited into the Education Trust Fund to hire ESL instructors for local boards of education.
• Establishes a nonrefundable Alabama income tax credit equal to the fees paid for international wire transfers, up to $5,000 per tax year, and requires receipts to claim the credit; the credit cannot reduce tax liability below zero and is not carried forward.
• Credits are available on a pro-rata basis to certain entities taxed as pass-throughs (e.g., S corporations).
• The Department of Revenue will provide notices to customers about the credit, and both the Commission and Department may share information to administer and enforce the act; standard forms and rules will be established.
• The act becomes effective July 1, 2025, with fee collection beginning in 2026.

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

Subjects

Businesses & Financial Institutions