Budget & Taxes

passed · Alabama · House Feb 10, 2026

HB 175: Income tax; credit for donation to food banks.

HB 175 creates a state income tax credit for Alabama farmers and food establishments that donate safe-to-eat farm products (like fruits, vegetables, dairy, or meat) to qualifying food banks. Donors can claim a credit equal to 15% of the donated food's value (capped at $5,000 per year), calculated using federal tax rules for charitable food donations. The credit is limited to $2 million total statewide annually and expires after the 2031 tax year, with applications processed on a first-come, first-served basis until the cap is reached. The bill takes effect in 2027 and aims to encourage food donations without requiring recipients to pay for the donations.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for food donations, providing tax relief to incentivize charitable giving to food banks, supporting public service funding through fiscal incentives.95% confidence

Sub-Topics Income Tax Tax Credits

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passed · Alabama · House Apr 7, 2026

HB 360: 2nd Amendment Sales Tax Holiday created; to exempt certain items from sales tax during the last weekend of August

HB 360 creates an annual sales tax holiday for firearms, ammunition, and specific hunting gear (like archery equipment, holsters, and suppressors) during the last weekend of August each year. This exempts the state sales tax on these purchases, directly affecting consumers buying these items during that period. Counties and municipalities may also choose to exempt local sales taxes on the same items during the holiday. The holiday runs from 12:01 a.m. on the last Friday in August until 12:00 a.m. on the following Sunday. Local governments must adopt opt-in resolutions by June 1 each year to participate.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax exemption for firearms/ammo, providing temporary tax relief during sales holiday95% confidence

Sub-Topics Sales Tax

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in committee · Alabama · House Feb 12, 2026

HB 285: Coal-Impacted Communities Economic and Workforce Development Grant program established, new fund created, distribution of rent and royalties of federal coal lease sales

HB 285 establishes a grant program to fund economic and workforce development initiatives in Alabama's coal-impacted communities using revenues from federal coal lease sales. The bill creates a dedicated "Renewing Coal-Impacted Communities Act Fund" in the state treasury, which will receive rent and royalty payments from federal coal leases starting January 1, 2027. Grants can support workforce training, infrastructure improvements, community development projects, and operations of the Alabama Surface Mining Commission. The program targets designated coal-impacted areas - including Fayette, Jefferson, Tuscaloosa, and Walker counties - and requires an advisory committee with local community representation to review applications and recommend funding.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates dedicated fund from federal coal lease revenues to finance economic development grants, advancing fiscal management through targeted budget allocation.92% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates dedicated fund for workforce training grants in coal-impacted communities, directly advancing employment development through targeted funding.90% confidence

Sub-Topics Workforce Development

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signed · Alabama · House Apr 9, 2026

HB 237: Education Opportunities Reserve Fund transfers for the fiscal year ending September 30, 2026

HB 237 transfers $362.45 million from Alabama's Educational Opportunities Reserve Fund to the RAISE Fund for the 2026 fiscal year, with $137.55 million specifically allocated to 13 public higher education institutions. The funding supports start-up or transitional programs at Alabama's public colleges and universities to expand student educational opportunities. Institutions like the University of Alabama System ($31.8 million), Auburn University ($15.3 million), and Alabama Community College System ($51.3 million) receive targeted allocations for these initiatives. The bill redirects existing reserve funds without creating new taxes or spending.

Topics ✓ Budget & TaxesSupports Budget & TaxesTransfers $362M from education reserve to fund public higher ed programs, increasing state appropriations for essential education services.92% confidence ✓ EducationSupports EducationTransfers $362M to RAISE Fund, $137.55M to 13 public colleges for new programs expanding student educational opportunities.95% confidence

Sub-Topics Higher Education

signed · Alabama · House Feb 26, 2026

HB 313: Blount County; senior property tax exemption, authorized; constitutional amendment

HB 313 is a proposed constitutional amendment for Blount County, Alabama, that would allow residents aged 65 or older to claim a property tax exemption on their primary residence. To qualify, homeowners must have owned and lived in a single-family home as their main residence for at least five years prior to claiming the exemption, which would freeze the property's assessed value as of October 1, 2026. The exemption requires written application to the county revenue commissioner between October 1 and December 31, 2027, and does not affect homestead exemptions or millage rate changes. This amendment must be approved by voters in a future election to become part of Alabama's constitution.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors 65+, reducing tax burden on fixed-income residents per bill's tax relief intent.90% confidence ✓ HousingSupports HousingProvides tax exemption for seniors, reducing housing costs and promoting affordability for vulnerable residents by freezing assessed value.85% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

signed · Alabama · House Feb 3, 2026

HB 204: Henry County; county lodging tax further provided for

HB 204 allows Henry County to impose a tax of up to 4% on short-term lodging rentals (such as hotels, motels, and vacation rentals) for transient guests staying less than 30 days. It exempts long-term rentals (30+ days), permanent housing, and items already subject to state sales tax. Businesses must report monthly tax collections to Alabama’s Department of Revenue, with proceeds deposited into the county’s General Fund for economic development and tourism promotion. The tax applies only to temporary stays, not permanent residences or sales tax-covered services.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new 4% lodging tax for Henry County, directing revenue to General Fund for tourism/economic development per bill's tax collection and allocation provisions.95% confidence

Sub-Topics Sales Tax State Budget

in committee · Alabama · House Jan 14, 2026

HB 232: Hospitals, private hospital assessment and Medicaid funding program sunset clause removed

HB 232 permanently extends a 6% tax on net patient revenue from privately operated hospitals in Alabama, which currently funds Medicaid payments but was scheduled to expire on September 30, 2028. This tax, described as a "cost of doing business" for these hospitals, requires them to pay the assessment annually to support Medicaid hospital payments. Funds collected go into the Hospital Assessment Account, which must be used exclusively for hospital payments and cannot replace other state Medicaid funding. The bill removes the sunset clause, making the tax permanent for all privately operated hospitals in the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanently extends 6% hospital tax to fund Medicaid, ensuring ongoing revenue stream for hospital payments without sunset clause.95% confidence ✓ HealthcareSupports HealthcarePermanently extends 6% hospital tax funding Medicaid payments, ensuring continued financial support for hospital services under Medicaid program.95% confidence

Sub-Topics Hospitals Medicaid

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signed · Alabama · House Apr 9, 2026

HB 242: Southern Preparatory Academy, appropriation

HB 242 appropriates $460,000 from Alabama's Education Trust Fund to Southern Preparatory Academy in Camp Hill for its educational program support during fiscal year 2027. The bill requires the academy to submit an operations plan, an audited financial statement for fiscal year 2025, and quarterly expenditure reports before receiving funds. It also mandates an end-of-year performance report detailing program effectiveness, costs, and accomplishments to the state Director of Finance. These requirements ensure accountability and compliance with Alabama's Budget and Financial Control Act. The funding becomes effective October 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates $460k from Education Trust Fund to fund a school program, directly advancing state budget allocation for education as required by appropriations subject.95% confidence ✓ EducationSupports EducationAppropriates $460k from Education Trust Fund for Southern Preparatory Academy's educational program support, directly funding school operations.95% confidence

Sub-Topics Appropriations Government Spending

signed · Alabama · House Feb 24, 2026

HB 142: Class 2 municipalities; tax increment districts, further provided

HB 142 would allow Class 2 municipalities in Alabama to include up to 50% of their total equalized taxable property value in tax increment districts, instead of the current 10% limit. This change aligns Class 2 cities with the existing 50% cap already permitted for Class 3 municipalities. Tax increment districts are tools for funding economic development projects by using increased property tax revenue from designated areas. The bill specifically amends Section 11-99-4 of Alabama law to adjust this property value threshold for Class 2 municipalities. This policy change directly affects Class 2 cities seeking to expand economic development funding through tax increment financing.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands municipal tax increment district cap from 10% to 50%, enabling greater fiscal flexibility for economic development funding via property tax revenue.95% confidence

Sub-Topics Property Tax Revenue

in committee · Alabama · House Jan 15, 2026

HB 258: Wheelchair repair; establishing time restrictions to ensure prompt repair, to require Medicaid coverage of repair, and to require manufacturers of motorized wheelchairs to provide necessary documentation, parts, and tools to independent repair providers

HB 258 requires timely repair of customized manual or motorized wheelchairs, directly affecting elderly and disabled users who rely on these devices. It mandates that repair providers complete repairs within 10 business days (with specific deadlines for assessment and part ordering), eliminates the need for new prescriptions or prior authorization for repairs from Medicaid or private insurance, and requires Medicaid to cover medically necessary repairs. The bill also forces wheelchair manufacturers to supply parts, tools, and documentation to independent repair shops on the same terms as their own authorized providers, and violations would be treated as deceptive trade practices. These changes aim to reduce repair delays and improve access to essential mobility equipment.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates Medicaid coverage for wheelchair repairs, directing state funds toward essential services for disabled users without new taxes.90% confidence ✓ HealthcareSupports HealthcareRequires Medicaid coverage for wheelchair repairs without prior authorization, improving access to essential medical devices for disabled users.95% confidence

Sub-Topics Medicaid Tags People with Disabilities

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