Alabama Provides Overtime Compensation Income Tax Deduction, Food Sales Tax Suspension

The Alabama Governor signed a law that includes: 1) providing for tax years beginning on and after Jan. 1, 2026 and ending Dec. 31, 2028, an individual income tax deduction of up to $1,000 for qualified overtime compensation, effective Oct. 1; and 2) effective immediately, suspending the state sales and use tax on food for the period beginning May 1, 2026 through June 30, 2026. [H.B. 527, enacted 04/16/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.