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AlabamaHB1632025 Regular SessionHouseWALLET

Decoupling the Tax Cuts and Jobs Act (TJCA) Amendment to Section 174 of the Internal Revenue Code

Sponsored By: David Faulkner (Republican)

Enacted

Taxation & Revenue

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Alabama businesses gain research deduction choices

For Alabama taxes, businesses can deduct research and experimental expenses in the year incurred or defer deductions under pre-2022 federal rules. This replaces Alabama’s use of the federal research expense rules changed by the Tax Cuts and Jobs Act. The choice covers taxes under Title 40, Chapters 16 and 18, for tax years beginning after January 1, 2024. The law takes effect immediately and provides for retroactive application. Alabama’s Department of Revenue can issue rules to carry it out.

Sponsors & Cosponsors

Sponsor

  • David Faulkner

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 465 • No: 0

House vote • 5/6/2025

Faulkner Concur In and Adopt - Adopted Roll Call 1190

Yes: 102 • No: 0

Senate vote • 5/6/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 962

Yes: 34 • No: 0

Senate vote • 5/6/2025

Roberts motion to Adopt - Adopted Roll Call 961

Yes: 34 • No: 0

House vote • 2/25/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 208

Yes: 99 • No: 0 • Other: 1

House vote • 2/25/2025

Motion to Adopt - Adopted Roll Call 207

Yes: 99 • No: 0 • Other: 1

House vote • 2/25/2025

Third Reading in House of Origin

Yes: 97 • No: 0 • Other: 1

Actions Timeline

  1. Enacted

    5/14/2025House

  2. Finance and Taxation Education 1st Amendment Offered

    5/6/2025Senate

  3. Roberts motion to Adopt - Adopted Roll Call 961

    5/6/2025Senate

  4. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 962

    5/6/2025Senate

  5. Faulkner Concur In and Adopt - Adopted Roll Call 1190

    5/6/2025House

  6. Ready to Enroll

    5/6/2025House

  7. Enrolled

    5/6/2025House

  8. Signature Requested

    5/6/2025Senate

  9. Delivered to Governor

    5/6/2025House

  10. Read for the Second Time and placed on the Calendar

    4/24/2025Senate

  11. Finance and Taxation Education 1st Amendment

    4/23/2025Senate

  12. Reported Out of Committee Second House

    4/23/2025Senate

  13. Read for the first time and referred to the Senate Committee on Finance and Taxation Education

    2/27/2025Senate

  14. Pending Committee Action in Second House

    2/27/2025Senate

  15. Third Reading in House of Origin

    2/25/2025House

  16. Financial Services Engrossed Substitute Offered

    2/25/2025House

  17. Motion to Adopt - Adopted Roll Call 207

    2/25/2025House

  18. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 208

    2/25/2025House

  19. Engrossed

    2/25/2025House

  20. Read for the Second Time and placed on the Calendar

    2/20/2025House

  21. Financial Services 1st Amendment

    2/19/2025House

  22. Reported Out of Committee House of Origin

    2/19/2025House

  23. Read for the first time and referred to the House Committee on Financial Services

    2/4/2025House

  24. Pending Committee Action in House of Origin

    2/4/2025House

Bill Text

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