SB77 Alabama 2025 Session

Summary

Primary Sponsor

April WeaverSenator

Republican

Session

2025 Regular Session

Title

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

Summary

SB77 would charge a new international wire transfer fee, create a sheriff immigration enforcement fund funded by those fees, and offer a tax credit equal to the fees paid up to a limit.

What This Bill Does

Money transmission businesses would collect a fee of 7.50 dollars plus 1.5 percent of the amount over 500 dollars for each outgoing international electronic wire transfer. The collected fees would be deposited into the Sheriffs' Immigration Enforcement and Detainer Fund to support county sheriffs' costs related to immigration enforcement and housing violators. Taxpayers could receive a nonrefundable income tax credit equal to the international wire transfer fees they paid, up to 5,000 dollars per year, claimed on their Alabama tax return. The Department of Revenue and the Alabama Securities Commission would administer the program and provide notices to customers about the credit.

Who It Affects

• Money transmission businesses licensed by the Alabama Securities Commission — must collect the new fees and remit them to the state, with receipts provided to customers.
• Taxpayers who pay international wire transfer fees — may qualify for a tax credit up to 5,000 dollars per year.
• County sheriffs — receive quarterly funding from the new fund to offset immigration enforcement costs and housing violators.
• The Alabama Securities Commission and the Department of Revenue — responsible for administering the act and rules.

Key Provisions

• Section 2(a)(1): starting January 1, 2026, each money transmission business must collect a 7.50 dollar fee plus 1.5 percent of the transfer amount over 500 dollars for every outgoing international electronic wire transfer not exceeding 500 dollars.
• Section 2(b)-(d): fees are remitted to the commission within 45 days after the end of each calendar quarter, with the commission depositing the funds into the Sheriffs' Immigration Enforcement and Detainer Fund; businesses must provide receipts and post public notices about the transfer fees.
• Section 3(a)-(b): for tax years beginning 2026, taxpayers can claim a tax credit equal to the total international wire transfer fees paid, up to 5,000 dollars, against Alabama income taxes; credit nonrefundable and not carried forward; receipts must be submitted to the Department to qualify.
• Section 4: creation of the Sheriffs' Immigration Enforcement and Detainer Fund in the State Treasury; quarterly allocations to county sheriffs based on county population to fund immigration enforcement costs and housing violators; fund is subject to audit.
• Section 5: the act becomes effective July 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

Businesses & Financial Institutions