Under existing law, certain items are deductible from taxable income for Alabama individual income taxes. There is no current deduction allowed for qualified overtime compensation. This bill would establish an Alabama individual income tax deduction for qualified overtime compensation equal to the amount of qualified overtime compensation received by a taxpayer during the taxable year, not to exceed one thousand dollars ($1,000) per taxpayer, effective for tax years beginning on or after January 1, 2025 through December 31, 2027. This bill would also make nonsubstantive, technical revisions to update the existing code language to current style.

Statutes affected:
Introduced: 40-18-15, 40-18-15