Alabama HB527 establishes a tax deduction for qualified overtime compensation, up to $1,000 per taxpayer, effective for tax years 2025 through 2027.

Alabama HB527 amends the state's income tax code to introduce a new deduction for qualified overtime compensation. This deduction allows individual taxpayers to subtract up to $1,000 of qualified overtime compensation from their taxable income for tax years beginning on or after January 1, 2025, and ending on or before December 31, 2027. The bill also includes provisions for adjusting standard deductions based on income levels and filing status, and it makes nonsubstantive, technical revisions to update existing code language to current style.

Alabama HB527 establishes a tax deduction for qualified overtime compensation, up to $1,000 per taxpayer, effective for tax years 2025 through 2027.

Alabama HB527 amends the state's income tax code to introduce a new deduction for qualified overtime compensation. This deduction allows individual taxpayers to subtract up to $1,000 of qualified overtime compensation from their taxable income for tax years beginning on or after January 1, 2025, and ending on or before December 31, 2027. The bill also includes provisions for adjusting standard deductions based on income levels and filing status, and it makes nonsubstantive, technical revisions to update existing code language to current style.