The Alabama Legislature adjourned sine die near midnight on May 14, 2025, with the final legislative meeting day bogged down with filibusters by certain senators. Fortunately, a spate of tax bills had already passed both the...more
5/28/2025
/ Alabama ,
Appeals ,
Business Taxes ,
Independent Contractors ,
Legislative Agendas ,
New Legislation ,
Research and Development ,
Retirement Plan ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Liability ,
Tax Reform
Each year we are asked to predict the business tax-related bills that died in the last legislative session but will likely be re-introduced in one form or another, as well as the tax issues that we expect to see addressed for...more
2/3/2025
/ Alabama ,
Business Taxes ,
Corporate Taxes ,
Department of Revenue ,
Income Taxes ,
IRS ,
Legislative Agendas ,
Sales Tax ,
SALT ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Legislation ,
Tax Planning ,
Tax Reform
Each year we are asked to predict the business tax-related bills that died in the last legislative session but will likely be re-introduced in one form or another, as well as the tax issues that we expect to see addressed for...more
1/22/2025
/ Alabama ,
Income Taxes ,
Legislative Agendas ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Legislation ,
Tax Planning ,
Tax Reform
As we strive to do annually, here is a summary of the major items of business tax legislation that have been introduced or we expect to be introduced during the 2024 regular session, which began February 6. From a tax and...more
As part of the annual meeting of the Alabama State Bar Tax Section held in Montgomery on August 16, representatives from the Alabama Department of Revenue (ALDOR) provided a helpful update on some key legislative and...more
The Alabama Legislature adjourned sine die on June 6 and concluded a productive session for tax and incentive bills. A few of the notable measures include the renewal of and enhancements to the Alabama Jobs Act and Growing...more
The start date for the Alabama Legislature’s 2023 regular session is near: Tuesday, March 7. As we do annually, here are some of the major items of business tax legislation we expect to see in the upcoming session...more
Because 2022 is an election year, the start date for the Alabama Legislature’s regular session comes early: Tuesday, January 11. As we do annually, here are some unofficial prognostications on the major items of tax...more
12/17/2021
/ Alabama ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Legislative Agendas ,
Local Taxes ,
Sales & Use Tax ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Legislation
On February 12, Gov. Kay Ivey signed into law Act 2021-1, introduced only two weeks before as House Bill 170 (and its counterpart SB 98), and designated three separate acts: (1) the Alabama Taxpayer Stimulus Freedom Act of...more
On January 28, HB 170 and its Senate counterpart, SB 98, were prefiled with the Alabama Legislature and designated as three separate acts: (i) The Alabama Taxpayer Stimulus Freedom Act of 2021, (ii) The Alabama Business Tax...more
2/2/2021
/ CARES Act ,
Consolidated Appropriations Act (CAA) ,
Economic Stimulus ,
Internal Revenue Code (IRC) ,
IRS ,
Pass-Through Entities ,
Relief Measures ,
SBA ,
State and Local Government ,
State Legislatures ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Reform
In August, the U.S. Treasury Department and the Internal Revenue Service issued final regulations on the deductibility of payments of cash or in-kind donations to certain tax-exempt organizations if the donor receives in...more
12/18/2020
/ Business Entities ,
Donations ,
Donors ,
IRS ,
New Regulations ,
PTEs ,
Safe Harbors ,
Scholarship Granting Organizations (SGOs) ,
State and Local Government ,
Tax Credits ,
Tax Exempt Entities ,
Year-End Tax Planning
How is taxable income determined in your state? To what extent is the state income tax base aligned with the federal income tax base?
Alabama levies a corporate income tax on business entities classified as taxable or “C”...more
10/12/2020
/ C-Corporation ,
Corporate Taxes ,
Department of Revenue ,
Exemptions ,
Filing Requirements ,
Franchise Taxes ,
Income Taxes ,
Nexus ,
S-Corporation ,
State and Local Government ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Rates
The landmark 335-page Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020, is an estimated $2+ trillion package primarily devoted to providing economic relief and stimulus for...more
4/3/2020
/ CARES Act ,
Charitable Deductions ,
Coronavirus/COVID-19 ,
Employee Retention ,
Families First Coronavirus Response Act (FFCRA) ,
Financial Stimulus ,
Legitimate Business Interest ,
Net Operating Losses ,
Relief Measures ,
Retirement Plan ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Deferral ,
Tax Relief
On March 13, 2020, President Trump issued an emergency declaration in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. Recognizing the rapidly evolving state of affairs and the harm to individuals and to...more
3/23/2020
/ Coronavirus/COVID-19 ,
Families First Coronavirus Response Act (FFCRA) ,
Filing Deadlines ,
Income Taxes ,
Paid Family Leave Law ,
Paid Leave ,
Payroll Taxes ,
Relief Measures ,
Sick Leave ,
Sick Pay ,
State and Local Government ,
State Taxes ,
Tax Credits
On December 16, the Internal Revenue Service (IRS) and the Treasury Department issued proposed regulations... that provide some good news and needed clarification for C corporations, individuals, and S corporations and other...more
12/19/2019
/ C-Corporation ,
Charitable Donations ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Pass-Through Entities ,
Popular ,
Proposed Regulation ,
PTEs ,
S-Corporation ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
As 2019 comes to a close, while most people are busy making holiday plans, dutiful tax advisors and financial planners are burning the midnight oil to minimize their clients’ tax bills that will be due in a few short months....more
12/5/2019
/ ABLE Accounts ,
Charitable Donations ,
Corporate Taxes ,
Federal Taxes ,
Income Taxes ,
IRS ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
Section 529 Program ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Liability ,
Tax Planning
Now that the dust has settled following the issuance of the final “SALT cap workaround” regulations by the Treasury Department, here’s a summary of those regulations, the IRS guidance issued in connection with the final...more
7/15/2019
/ C-Corporation ,
Charitable Donations ,
Final Rules ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
New Guidance ,
Pass-Through Entities ,
Proposed Regulation ,
PTEs ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State and Local Government ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
Two landmark bills were introduced in the Alabama Legislature on April 11, potentially affecting numerous businesses in the state. Committees of the House of Representatives are expected to consider the Financial Institution...more
4/16/2019
/ Banking Sector ,
Excise Tax ,
Financial Institutions ,
Income Taxes ,
Innovation ,
Proposed Legislation ,
Research and Experiment Tax Credit ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Incentives ,
Tax Reform
Sometimes the law of unintended consequences is difficult to correct after the fact. The most recent example may be the 2017 Tax Cuts and Jobs Act’s $10,000 annual limitation on state and local tax deductions claimed by...more
1/4/2019
/ C-Corporation ,
Charitable Donations ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Pass-Through Entities ,
Proposed Regulation ,
PTEs ,
S-Corporation ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
As previously reported, during the recent legislative session the Alabama Legislature finally resolved the so-called “Moody Issue,” named after the taxpayer victory in Moody v. Alabama Department of Revenue, regarding the...more
6/12/2018
/ Department of Revenue ,
Filing Deadlines ,
Income Taxes ,
Personal Property ,
Proposed Regulation ,
Public Comment ,
Public Hearing ,
Rental Tax ,
State and Local Government ,
Tangible Property ,
Tax Amnesty ,
Tax Credits ,
Tax Penalties ,
Tax Refunds
Gov. Kay Ivey signed House Bill 384, into law last Wednesday, March 28, ending a debate that has lasted for almost a decade over the scope of the individual income tax credit for certain taxes paid to other states. ...more
Many predicted that the 2018 regular session of the Alabama Legislature would be less eventful than in years past since members of the House of Representatives and Senate are up for re-election this year, and most lawmakers...more
3/20/2018
/ Delinquency Status ,
Hiring & Firing ,
Income Taxes ,
Legislative Agendas ,
Local Taxes ,
Municipal Taxes ,
Proposed Legislation ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Amnesty ,
Tax Credits ,
Tax Deductions ,
Veterans
Two weeks ago, the Baldwin County Circuit Court entered an order dismissing the Alabama Department of Revenue’s (ADOR) appeal from the February 2017 decision by the Alabama Tax Tribunal in Moody v. Alabama Department of...more
Since the landmark Alabama Accountability Act was enacted in 2013, allowing individual and corporate donors to provide scholarship funds for underprivileged children in our state who are zoned for underperforming public...more
The Alabama Legislature adjourned late Friday, May 19, with several tax bills crossing the finish line during the final week (and many on the last day). Both the Education Trust Fund and General Fund budgets were passed by...more