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Read. Follow. Verify.Alabama Establishes Overtime Income Tax Deduction and Suspends State Food Sales Tax for Two Months
Last action · April 17, 2026: EnactedSponsor: James Lomax
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What This Bill Does
Alabama enacts a temporary individual income tax deduction for up to $1,000 per taxpayer for tax years 2026 through 2028, and suspends the state portion of on food from May 1, 2026, through June 30, 2026.
Individual taxpayers receive tax relief on overtime earnings and grocery purchases over specific periods, while the state temporarily foregoes associated tax revenues.
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Individual income taxpayers
Taxpayers who earn qualified overtime compensation can claim an income tax deduction up to $1,000 for tax years 2026 through 2028.
Grocery shoppers
Consumers purchasing food items in Alabama will experience a temporary suspension of the state portion of sales and use taxes from May 1, 2026, through June 30, 2026.
Department of Revenue
The department is authorized to adopt rules to implement the temporary suspension of food sales and use taxes.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
How much can I deduct for overtime pay under this law?
When does the state food sales tax suspension take effect?
Do I need to itemize deductions to claim the overtime tax deduction?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Current status: Became law.
Procedural history
26 actions- Apr 17, 2026HouseEnrolledEnacted
- Apr 8, 2026HouseEnrolledDelivered to Governor
- Apr 8, 2026SenateSignature Requested
- Apr 8, 2026HouseEnrolled
- Apr 8, 2026HouseReady to Enroll
- Apr 8, 2026SenateFloorMotion to Read a Third Time and Pass - Adopted Roll Call 1244
Show 20 earlier actions
- Apr 8, 2026SenateThird Reading in Second House
- Apr 7, 2026SenateRead for the Second Time and placed on the Calendar
- Apr 7, 2026SenateCommitteeReported Out of Committee Second House
- Mar 31, 2026SenateCommitteePending Committee Action in Second House
- Mar 31, 2026SenateIntroducedRead for the first time and referred to the Senate Committee on Finance and Taxation Education
- Mar 31, 2026HouseEngrossed
- Mar 31, 2026HouseFloorMotion to Read a Third Time and Pass as Amended - Adopted Roll Call 1064
- Mar 31, 2026HouseMotion to Adopt - Adopted Roll Call 1063
- Mar 31, 2026HouseShaw 1st Amendment Offered
- Mar 31, 2026HouseLomax motion to Table - Adopted Roll Call 1062
- Mar 31, 2026HouseLands 2nd Amendment Offered
- Mar 31, 2026HouseLomax motion to Table - Adopted Roll Call 1061
- Mar 31, 2026HouseLands 1st Amendment Offered
- Mar 31, 2026HouseMotion to Adopt - Adopted Roll Call 1060
- Mar 31, 2026HouseWays and Means Education Engrossed Substitute Offered
- Mar 31, 2026HouseThird Reading in House of Origin
- Mar 19, 2026HouseRead for the Second Time and placed on the Calendar
- Mar 18, 2026HouseCommitteeReported Out of Committee House of Origin
- Feb 26, 2026HouseCommitteePending Committee Action in House of Origin
- Feb 26, 2026HouseIntroducedRead for the first time and referred to the House Committee on Ways and Means Education
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Targeted Overtime Tax Relief
The act creates a temporary individual income tax deduction specifically for overtime earnings between 2026 and 2028.
Connected Entities
Sources
alison.legislature.state.al.us
Analysis Score
0–100- Significance75How much this matters to a regular citizen
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz45Current news / social attention level
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