State taxpayers may see even more relief with passing of bill
Published 12:00 am Wednesday, March 12, 2008
Staff and wire
Taxpayers in Alabama are closer to not having to pay state income taxes on their federal rebates.
The House Education Appropriations Committee approved a bill that exempts the tax rebates from state taxes, but not before it amended the bill to remove the exemption for businesses.
The federal package allows businesses to increase the amount that they deduct for the depreciating value of equipment. State law ties Alabama’s depreciation schedule for businesses to the federal schedule, which means Alabama’s schedule would go up automatically under federal legislation. But the House committee voted to allow only the current deduction.
The bill, sponsored by Rep. Terry Spicer, D-Elba, now goes to the full House for debate.
Other state’s legislatures, including Louisiana, Missouri and Iowa are considering similar packages.
Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the Internal Revenue Service, with an additional $300 per child. People earning at least $3,000 and those who owe little to no taxes would get $300 for singles and $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates – $50 less per $1,000 they make over those thresholds.