# Alabama SB86: Labor and employment, independent contractors, establishment of portable benefits accounts Alabama SB86, Labor and employment, independent contractors, establishment of portable benefits accounts, is a 2025 Regular Session Senate bill sponsored by Arthur Orr (Republican); status enacted, last action 2025-04-10 (Enacted); PRIA reads it as touching household money (as of 2026-10-16). - Canonical: https://policyrisk.com/state-bill/AL-SB86-2025rs - As of: 2026-10-16 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Alabama SB86 - State: Alabama - Session: 2025 Regular Session - Title: Labor and employment, independent contractors, establishment of portable benefits accounts - Status: enacted - Chamber: Senate - Introduced: 2025-02-04 - Last action: 2025-04-10, Enacted - Sponsor: Arthur Orr (Republican) - Cosponsors: 1 - Subjects: Labor & Employment - Touches household money: yes - Roll calls: 6 (334 yes, 0 no in all) - Economic provisions PRIA read: 4 ## Summary No summary available. ## Bill overview: provisions PRIA read - Contractors can deduct benefit account contributions: benefit, medium. For tax years beginning after December 31, 2025, qualifying independent contractors get an Alabama income tax deduction. They can deduct 100% of their own contributions and hiring-party contributions to their portable benefit accounts during the tax year. The deduction is an adjustment to income on… - Businesses can deduct contractor benefit contributions: benefit, medium. For tax years beginning after December 31, 2025, hiring parties get an Alabama business expense deduction for contractor benefits. They can deduct 100% of their own money contributed as compensation to contractors' portable benefit accounts. This deduction does not cover money withheld from contrac… - Contractors get portable benefit accounts: mixed, medium. Beginning December 31, 2025, independent contractors can open and own accounts for health coverage, income replacement insurance, life insurance, or retirement. Banks, investment firms, or technology providers and program managers working through those institutions administer the accounts. Anyone,… - Benefit contributions cannot establish employee status: mixed, low. Beginning December 31, 2025, hiring parties gain protection against employment claims based on portable benefit contributions made as compensation. Alabama courts cannot treat those contributions as evidence of an employment relationship, including for workers' compensation liability. This limits o… ## Sponsors and cosponsors - Sponsor: Arthur Orr (Republican), Senate - Cosponsor: Greg Albritton (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-01 | House | Motion to Read a Third Time and Pass - Adopted Roll Call 591 | pass | 103 | 0 | | | 2025-04-01 | House | Third Reading in Second House | pass | 103 | 0 | | | 2025-02-11 | Senate | Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 44 | pass | 32 | 0 | | | 2025-02-11 | Senate | Orr motion to Adopt - Adopted Roll Call 43 | pass | 32 | 0 | | | 2025-02-11 | Senate | Orr motion to Adopt - Adopted Roll Call 42 | pass | 32 | 0 | | | 2025-02-11 | Senate | Third Reading in House of Origin | pass | 32 | 0 | | ## Actions (22) - 2025-04-10: Enacted (Senate) - 2025-04-03: Delivered to Governor (Senate) - 2025-04-03: Signature Requested (House) - 2025-04-02: Enrolled (Senate) - 2025-04-01: Third Reading in Second House (House) - 2025-04-01: Motion to Read a Third Time and Pass - Adopted Roll Call 591 (House) - 2025-04-01: Ready to Enroll (Senate) - 2025-03-19: Reported Out of Committee Second House (House) - 2025-03-19: Read for the Second Time and placed on the Calendar (House) - 2025-02-12: Read for the first time and referred to the House Committee on Ways and Means Education (House) - 2025-02-12: Pending Committee Action in Second House (House) - 2025-02-11: Third Reading in House of Origin (Senate) - 2025-02-11: Orr 1st Amendment Offered (Senate) - 2025-02-11: Orr motion to Adopt - Adopted Roll Call 42 (Senate) - 2025-02-11: Orr 2nd Amendment Offered (Senate) - 2025-02-11: Orr motion to Adopt - Adopted Roll Call 43 (Senate) - 2025-02-11: Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 44 (Senate) - 2025-02-11: Engrossed (Senate) - 2025-02-05: Reported Out of Committee House of Origin (Senate) - 2025-02-05: Read for the Second Time and placed on the Calendar (Senate) - 2025-02-04: Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund (Senate) - 2025-02-04: Pending Committee Action in House of Origin (Senate) ## Bill text - As Introduced: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/SB86-int.pdf) - Engrossed: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/SB86-eng.pdf) - Enrolled: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/SB86-enr.pdf) ## Related bills - HB52: Income Taxes; to make technical changes to the funding provisions of the CHOOSE Act credits and increase funding, and to extend the sunset date for deductions… (enacted) - SB331: Barbour County, compensation of the judge of probate further provided for (enacted) - SB102: Medicaid; providing presumptive eligibility to pregnant women (enacted) - HB445: Cannabinoids found in hemp; licensure and regulation of sale of consumable cannabinoid products by Alcoholic Beverage Control Board imposed (enacted) - HB357: Tobacco products, heated tobacco product definition and tax provided for (enacted) - HB349: Russell County; sheriff, salary further provided (enacted) ## Sources - [As Introduced (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/SB86-int.pdf) - [Engrossed (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/SB86-eng.pdf) - [Enrolled (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2025RS/SB86-enr.pdf) ## Related - [HB52: Income Taxes; to make technical changes to the funding provisions of the CHOOSE…](https://policyrisk.com/state-bill/AL-HB52-2025rs) - [SB331: Barbour County, compensation of the judge of probate further provided for](https://policyrisk.com/state-bill/AL-SB331-2025rs) - [SB102: Medicaid; providing presumptive eligibility to pregnant women](https://policyrisk.com/state-bill/AL-SB102-2025rs) - [HB445: Cannabinoids found in hemp; licensure and regulation of sale of consumable cann…](https://policyrisk.com/state-bill/AL-HB445-2025rs) - [HB357: Tobacco products, heated tobacco product definition and tax provided for](https://policyrisk.com/state-bill/AL-HB357-2025rs) - [HB349: Russell County; sheriff, salary further provided](https://policyrisk.com/state-bill/AL-HB349-2025rs) - [Alabama bills](https://policyrisk.com/states/alabama/bills) - [Alabama state hub](https://policyrisk.com/states/alabama) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/AL-SB86-2025rs (as of 2026-10-16).