The bill aims to decouple Alabama's income tax regulations from the federal Tax Cuts and Jobs Act (TCJA) concerning the amortization of research and experimental expenditures. Specifically, it allows taxpayers to either currently deduct these expenditures or treat them as deferred expenses, following the provisions of 26 U.S.C. § 174 as they existed prior to tax year 2022. This change will take effect for tax years beginning on or after January 1, 2024, and the Department of Revenue is authorized to adopt rules for the implementation and administration of this act.

Additionally, the bill includes a retroactive effect clause, ensuring that the new provisions apply to past tax years as well. The legal language inserted into the current law includes the decoupling from the TCJA and the options for taxpayers regarding their research and experimental expenditures, while no specific deletions from current law are noted in the summary provided. The act is set to become effective immediately upon passage.