Alabama 2025 Regular Session

Alabama House Bill HB192 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB192INTRODUCED
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3	3	HB192
4	4	7D7YEVV-1
5	5	By Representative Shirey
6	6	RFD: Ways and Means Education
7	7	First Read: 05-Feb-25
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12	12	5 7D7YEVV-1 02/05/2025 PMG (L)PMG 2025-390
13	13	Page 1
14	14	First Read: 05-Feb-25
15	15	SYNOPSIS:
16	16	Under existing law, money transmission
17	17	businesses, which include businesses that conduct
18	18	electronic wire transfers, must be licensed by the
19	19	Alabama Securities Commission.
20	20	This bill would require money transmission
21	21	businesses to collect on outgoing international
22	22	electronic wire transfers a fee equal to two percent of
23	23	the total amount of the wire transfer and would provide
24	24	that the fees collected be periodically deposited into
25	25	the Education Trust Fund to be used exclusively to hire
26	26	English Language Learner (ELL) instructors.
27	27	This bill would allow taxpayers to be granted a
28	28	tax credit against income taxes in the amount of all
29	29	international electronic wire transfer fees paid by the
30	30	customer.
31	31	This bill would require the Department of
32	32	Revenue to establish a notice to customers who initiate
33	33	international electronic wire transfers of the ability
34	34	to be granted a tax credit for outgoing international
35	35	wire transfer fees paid by a taxpayer.
36	36	This bill would also authorize the Alabama
37	37	Securities Commission and the Alabama Department of
38	38	Revenue to administer this act.
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66	66	28 HB192 INTRODUCED
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68	68	A BILL
69	69	TO BE ENTITLED
70	70	AN ACT
71	71	Relating to wire transfers; to require money
72	72	transmission businesses to collect fees on outgoing
73	73	international wire transfers and provide for distribution of
74	74	fee proceeds for hiring ESL teachers; to authorize an income
75	75	tax credit equal to the amount of fees paid by taxpayers for
76	76	outgoing international wire transfers; and to authorize the
77	77	Alabama Securities Commission and the Alabama Department of
78	78	Revenue to administer this act.
79	79	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
80	80	Section 1. For the purpose of this act, the following
81	81	terms have the following meanings:
82	82	(1) COMMISSION. The Alabama Securities Commission.
83	83	(2) DEPARTMENT. The Alabama Department of Revenue.
84	84	(3) ELECTRONIC WIRE TRANSFER. An electronic transfer of
85	85	money via a network. The term does not include a transaction
86	86	where money debited is from an account held by the requester
87	87	of a transfer of a banking institution authorized to do
88	88	business in this state or any business entity authorized by
89	89	law to do business in this state.
90	90	(4) MONEY TRANSMISSION BUSINESS. Any person required to
91	91	obtain a license pursuant to Chapter 7A of Title 8, Code of
92	92	Alabama 1975.
93	93	Section 2. (a)(1) On and after January 1, 2026, each
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121	121	56 HB192 INTRODUCED
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123	123	Section 2. (a)(1) On and after January 1, 2026, each
124	124	money transmission business shall collect a fee on every
125	125	outgoing international electronic wire transfer equal to two
126	126	percent of the amount of the international electronic wire
127	127	transfer.
128	128	(2) A money transmission business shall provide to each
129	129	customer a receipt for each international electronic wire
130	130	transfer which clearly delineates the fee incurred pursuant to
131	131	this subsection.
132	132	(b) Not later than the 45 days following the close of
133	133	each calendar quarter, a money transmission business shall
134	134	remit the fees collected under subsection (a) to the
135	135	commission by means established by rule of the commission. The
136	136	commission shall transfer monies collected pursuant to this
137	137	subsection to the Comptroller for deposit into the Education
138	138	Trust Fund to be used exclusively for the purpose of hiring
139	139	English Language Learner instructors by local boards of
140	140	education.
141	141	(c) Each money transmission business shall report to
142	142	the commission the number of international electronic wire
143	143	transfers made during a calendar quarter along with the
144	144	monetary amount of each transfer and any additional
145	145	information required by the commission, by rule, at the time
146	146	the fees are remitted pursuant to subsection (b).
147	147	(d) Each money transmission business shall post the
148	148	notice established pursuant to Section 3(e) in an area
149	149	accessed by the public where electronic wire transfers are
150	150	conducted.
151	151	(e) Except as provided in this act, Chapter 7A of Title
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181	181	(e) Except as provided in this act, Chapter 7A of Title
182	182	8, Code of Alabama 1975, shall apply.
183	183	(f) The commission shall adopt rules to administer this
184	184	section.
185	185	Section 3. (a)(1) For tax years beginning on and after
186	186	January 1, 2026, a credit is allowed against income taxes
187	187	imposed by Chapter 18 of Title 40, Code of Alabama 1975, in
188	188	the amount of all international electronic wire transfer fees
189	189	paid by any taxpayer under Section 2 or five thousand dollars
190	190	($5,000), whichever is less. The credit must be claimed on the
191	191	tax return that corresponds with the tax year during which the
192	192	fees were paid.
193	193	(2) To qualify for the income tax credit, a taxpayer
194	194	shall submit to the department in a manner prescribed by the
195	195	department, by rule, the receipts received under Section
196	196	2(a)(2).
197	197	(b) The tax credit shall not be allowed to decrease a
198	198	taxpayer's liability to less than zero. The credit is not
199	199	refundable and may not be carried forward. The credit shall be
200	200	available on a pro-rata basis to entities taxed under 26
201	201	U.S.C. Subtitle A, Chapter 1, Subchapter S or Subchapter K.
202	202	(c) The department shall not be required under this
203	203	section to disclose confidential information subject to
204	204	Section 40-2A-10, Code of Alabama 1975. However, the
205	205	department may share information with the commission upon
206	206	written request in order to aid or assist with any
207	207	investigation or other action authorized by Chapter 7A of
208	208	Title 8, Code of Alabama 1975. Additionally, the commission
209	209	may share information with the department to enforce this act.
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239	239	may share information with the department to enforce this act.
240	240	The information shared shall be limited to what is necessary
241	241	to administer this act and shall not be considered public
242	242	records for purposes of Article 3 of Chapter 12 of Title 36,
243	243	Code of Alabama 1975. Upon receipt of information from the
244	244	department, Section 40-2A-10, Code of Alabama 1975, shall
245	245	apply to the commission and its employees with respect to the
246	246	use, dissemination, or other handling of the information. The
247	247	department shall comply with Section 8-7A-21(b), Code of
248	248	Alabama 1975, as to any information shared by the commission.
249	249	(d) The department, by rule, may require a money
250	250	transmission business to provide certifying documents and
251	251	other information necessary to determine or confirm the tax
252	252	credit amounts referenced in this section.
253	253	(e) The department shall establish a standard form to
254	254	be posted by money transmission businesses which notifies
255	255	customers that upon filing an Alabama income tax return with
256	256	either a valid Social Security number or a valid taxpayer
257	257	identification number, the customer may be entitled to an
258	258	income tax credit equal to the amount of the electronic wire
259	259	transfer fees paid by the customer for the international
260	260	electronic wire transfer.
261	261	(f) The department shall adopt rules to implement this
262	262	section.
263	263	Section 4. This act shall become effective on July 1,
264	264	2025.
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