- Alabama Governor Kay Ivey signed HB 163 and HB 386 on 14 May 2025
- HB 163 decouples Alabama from federal TCJA rules on R&E expenditures
- Alabama taxpayers can deduct R&E expenses in the year incurred or defer them
- HB 163 applies to tax years starting on or after 1 January 2024
- HB 386 reduces state sales tax on groceries from 3 percent to 2 percent starting 1 September 2025
- Previous reduction from 4 percent to 3 percent occurred in 2023 under HB 479
- HB 386 allows local governments to lower sales taxes on food if revenue grows by over 2 percent
- HB 386 takes effect on 1 June 2025
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
