Alabama 2025 Regular Session

Alabama House Bill HB52 Compare Versions

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

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1	1	HB52INTRODUCED
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3	3	HB52
4	4	UM6HDGX-1
5	5	By Representatives Garrett, Almond
6	6	RFD: Ways and Means Education
7	7	First Read: 04-Feb-25
8	8	PFD: 01-Oct-24
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14	14	6 UM6HDGX-1 09/09/2024 RA ()RA 2024-2508
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16	16	PFD: 01-Oct-24
17	17	SYNOPSIS:
18	18	Under current law, contributions to an Alabama
19	19	Achieving a Better Life Experience (ABLE) savings
20	20	account are deductible from taxable income on an
21	21	Alabama individual income tax return until December 31,
22	22	2025, when the deduction is sunset.
23	23	This bill would extend the Alabama ABLE
24	24	contribution deduction through December 31, 2030.
25	25	A BILL
26	26	TO BE ENTITLED
27	27	AN ACT
28	28	Relating to income taxes; to amend Section 40-18-15.8,
29	29	Code of Alabama 1975, to extend the sunset date for the
30	30	existing income tax deduction for contributions to an Alabama
31	31	Achieving a Better Life Experience (ABLE) savings account to
32	32	December 31, 2030.
33	33	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
34	34	Section 1. Section 40-18-15.8, Code of Alabama 1975, is
35	35	amended as follows:
36	36	"§40-18-15.8
37	37	(a) An individual taxpayer shall be allowed a deduction
38	38	from gross income, regardless of whether the taxpayer itemizes
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66	66	28 HB52 INTRODUCED
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68	68	from gross income, regardless of whether the taxpayer itemizes
69	69	income tax deductions in calculating the income tax imposed
70	70	pursuant to Section 40-18-5, for contributions made to an
71	71	Alabama Achieving a Better Life Experience (ABLE) savings
72	72	account, defined in Section 16-33C-3, as prescribed by this
73	73	section.
74	74	(b) An individual taxpayer will be allowed to deduct
75	75	contributions made on or after January 1, 2021 , to an Alabama
76	76	ABLE savings account, by or on behalf of such individual, of
77	77	an amount up to five thousand dollars ($5,000) per annum. If
78	78	the taxpayer makes a nonqualified withdrawal as defined by
79	79	Section 529A of the Internal Revenue Code (26 U.S.C. § 529A),
80	80	the amount of the nonqualified withdrawal, plus 10 percent of
81	81	the amount withdrawn, shall be added back to the income of the
82	82	contributing taxpayer in the year the nonqualified withdrawal
83	83	was distributed. Rollover amounts transferred to an Alabama
84	84	ABLE savings account shall not be considered contributions for
85	85	purposes of this deduction to the extent that an Alabama
86	86	income tax deduction has already been claimed for the rollover
87	87	contribution amounts.
88	88	(c) The Department of Revenue may adopt rules to assist
89	89	with the administration of this section.
90	90	(d) The deduction allowed under this section shall not
91	91	be claimed for tax years that begin after December 31, 2030.
92	92	Unless extended by an act of the Legislature, this section
93	93	shall sunset on December 31, 2025. "
94	94	Section 2. This act shall become effective on October
95	95	1, 2025.
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