Alabama House Bill 391, which provides tax relief to small businesses, was signed into law Wednesday.
The new law provides relief from the business privilege tax for Alabama small businesses. More than 230,000 small businesses across Alabama will benefit from this law.
“Alabama’s small businesses are the soul of our economy, and as long as I am your governor, I will continue to be a champion for these hardworking men and women," said Ivey.
Beginning in tax year 2023, the new law cuts the $100 minimum business privilege tax in half to $50 for small businesses. It will completely exempt small businesses from the minimum tax beginning in 2024.
Currently, the Alabama Business Privilege Tax levies a minimum of $100 annually on corporations, limited liability entities and other businesses in Alabama.
The tax remains due every registered year until the entity is legally dissolved, regardless of whether such entity is actively doing business in Alabama.