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Alabama to Shield Banks’ Foreign Income, Study Wider Tax Moves

May 29, 2019, 8:16 PM

Alabama’s tax on bank earnings is getting what the industry called a long-needed overhaul, but updates to the state’s broader corporate income tax in response to federal changes look unlikely this year.

Act No. 2019-284 (H.B. 419) adjusts how banks account for dividends, such as repealing a provision that limits dividend deductions to Alabama-native corporations. It also requires banks to make quarterly estimated tax payments, among various other technical changes. The new law is estimated to be revenue neutral in the long term.

Gov. Kay Ivey (R) signed the bill into law May 28, and it takes effect Jan. 1, ...