Gov. Kay Ivey signs tax relief package reducing burden on workers, retirees and farmers

Monday, Gov. Kay Ivey signed nine tax relief bills into law following the conclusion of the 2022 regular session of the Alabama Legislature

Per Yellowhammer News:

Monday, Gov. Kay Ivey signed nine tax relief bills into law following the conclusion of the 2022 regular session of the Alabama Legislature.

The legislation is geared toward providing tax relief for Alabama workers, retirees, farmers among others.

In a statement announcing her signing of the legislation, Ivey proclaimed that Alabama understood “better than any state in the nation” the importance of providing tax relief to the citizenry.

“Alabama recognizes better than any state in the nation that providing tax relief, when possible, is the right thing to do,” stated Ivey in a release. “I am thrilled to have signed nine additional tax relief bills today, on top of what we have already accomplished this year. I am committed to making sure Alabama is the best place to live, work and raise a family. I commend the Alabama Legislature for their hard work in providing tax relief to Alabamians.”

The bill package signed by the governor on Monday adds to the various tax relief measures that passed the legislature during the 2022 regular session, marking 15 bills signed into law that reduce the tax burden on Alabamians.

The following is a breakdown of the bills Ivey signed into law Monday:

-House Bill 16 provides an exemption of the first $6,000 of taxable retirement income for taxpayers ages 65 or older, beginning January 1, 2023.

-House Bill 163 and Senate Bill 19 increase the standard deduction for married taxpayers filing a joint return by $1,000, and for single, head of family and married filing
separately by $500. The legislation also increases the gross income qualifying threshold for the $1,000 dependent exemption from $20,000 to $50,000.

-House Bill 400 creates an exemption from ad valorem tax of grain bins used exclusively for the purpose of storing, holding, drying, preserving or otherwise preparing a
grain for market.

-House Bill 415 prohibits a county from charging any license or fee for the sale of farm products produced by a farmer or others engaged in the production of farm products.

-Senate Bill 274 establishes an exemption of sales and use tax on the sale of producer value added agricultural products when the sale is made by the producer, family
member or employee, beginning October 1, 2022, and ending September 20, 2027.

-House Bill 487 increases the one-time credit available for adopting a child to $2,000 if the child is an Alabama resident, available from January 1, 2023, through December
31, 2027.

-House Bill 253 provides an annual income tax credit of $300-$600 for certain active firefighters and paramedics who receive certain types of training, available from
January 1, 2023, through December 31, 2027.

-House Bill 20 provides an extension of the sales tax exemption for the sale of parts, components and systems of certain military aircraft through May 30, 2027.