Gov. Kay Ivey on Monday signed six tax relief bills into law, including bills to exempt some taxable retirement income for older Alabamians and legislation to increase the standard tax deduction for many.
“Alabama recognizes better than any state in the nation that providing tax relief, when possible, is the right thing to do. I am thrilled to have signed nine additional tax relief bills today, on top of what we have already accomplished this year,” Ivey said in a statement. “I am committed to making sure Alabama is the best place to live, work and raise a family. I commend the Alabama Legislature for their hard work in providing tax relief to Alabamians.”
Bills signed by Gov. Ivey on Monday include:
- (HB162) Exemption of the first $6,000 of taxable retirement income for taxpayers ages 65 or older, beginning January 1, 2023;
- (HB163, SB19) Increasing the standard deduction for married taxpayers filing a joint return by $1,000, and for single, head of family and married filing separately by $500, and, increasing the gross income qualifying threshold for the $1,000 dependent exemption from $20,000 to $50,000, allowing more taxpayers to qualify;
- (HB400) Exemption from ad valorem tax of grain bins used exclusively for the purpose of storing, holding, drying, preserving or otherwise preparing a grain for market;
- (HB415) Prohibiting a county from charging any license or fee for the sale of farm products produced by a farmer or others engaged in the production of farm products;
- (SB274) Exemption of sales and use tax on the sale of producer value added agricultural products (such as jam made by the producer from the producer’s own fruits) when the sale is made by the producer, family member or employee, beginning October 1, 2022, and ending September 20, 2027;
- (HB487) Increasing the one-time credit available for adopting a child to $2,000 if the child is an Alabama resident, available from January 1, 2023, through December 31, 2027;
- (HB253) Providing an annual income tax credit of $300-$600 for certain active firefighters and paramedics who receive certain types of training, available from January 1, 2023, through December 31, 2027;
- (HB20) Providing an extension of the sales tax exemption for the sale of parts, components, and systems of certain military aircraft through May 30, 2027.