HB163ENGROSSED
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HB163
84W11HF-2
By Representative Faulkner
RFD: Financial Services
First Read: 04-Feb-25
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First Read: 04-Feb-25
A BILL
TO BE ENTITLED
AN ACT
Relating to income tax; to decouple Alabama from the
Tax Cuts and Jobs Act (TCJA) amendment, 26 U.S.C. § 174,
relating to the amortization of research and experimental
expenditures; to allow for such expenditures to follow the
provisions of 26 U.S.C § 174 as they existed prior to tax year
2022; and to provide for retroactive effect.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Effective for tax years beginning on or
after January 1, 2024, research and experimental expenditures
for Alabama tax purposes under Chapter 16 and Chapter 18 of
Title 40, Code of Alabama 1975, shall not follow the
provisions of 26 U.S.C § 174, as amended by the Tax Cuts and
Jobs Act (TCJA), P.L. 115-97. Taxpayers shall have the option
to currently deduct research and experimental expenditures or
treat the expenditures as deferred expenses in the same manner
as provided in 26 U.S.C § 174 prior to tax year 2022.
Section 2. The Department of Revenue may adopt rules
for implementation and administration of this act.
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for implementation and administration of this act.
Section 3. This act shall become effective on October
1, 2025.
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1, 2025.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Financial Services
................04-Feb-25
Read for the second time and placed
on the calendar:
1 amendment
................20-Feb-25
Read for the third time and passed
as amended
Yeas 99
Nays 0
Abstains 1
................25-Feb-25
John Treadwell
Clerk
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