The Alabama legislature has given small businesses in the state one more helping hand to deduct health insurance expenses against taxes. This week, the Alabama House passed a bill that will increase the state income tax deduction that small businesses get for supplying health insurance for their workers. The bill, sponsored by Republican Rep. April Weaver of Pelham, cleared the House 83-12 last month and the Senate 29-1 Thursday. The bill now goes to Republican Gov. Robert Bentley, who pushed for its passage and has promised to sign it into law.
Alabama small businesses currently can deduct 150% of their health insurance expenses against their taxes. Under new legislation, Alabama small businesses with fewer than 25 employees will now be able to deduct 200% of their health insurance expenses.
It’s not all roses, however. Fiscal experts estimate that increasing the health insurance tax deduction will decrease Alabama’s tax revenue by $10 annually, one more hit for the state’s public schools which have already been suffering because of budget cuts.
Were you able to deduct your health insurance expenses from your taxes this year? Tell us about it!
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