Alabama legislature looks to increase income tax deduction for businesses
The bill -- which passed the Senate 29-1 and the House 83-12 -- allows businesses with fewer than 25 employees to deduct 200 percent of their health insurance expenses on state taxes. Currently, the allowable deduction is 150 percent.
The legislation will likely decrease income tax deductions by $10 million per year, according to fiscal analysis. Governor Robert Bentley (R) helped push for the law's passage and is expected to sign the legislation.