Alabama Legislature approves tax break for small business
Alabama Legislature approves tax break for small business
May 31, 2008
Associated Press
MONTGOMERY -- The Alabama Legislature has voted to give a tax break to small businesses that furnish health insurance to their employees.
The Senate gave final approval Saturday to a bill that will allow businesses with less than 25 employees to deduct from their state income tax 150 percent of what they spend on employees' health insurance. Workers at small businesses would get the same deduction for their payments toward health insurance. The deduction has been 100 percent.
William Canary of the Business Council of Alabama calls the tax break "a wonderful opportunity" for small businesses and working families. He says it will affect the bulk of the state's businesses.
The Legislature is paying for the $33 million tax break by closing loopholes that some large national corporations use to pay less state income tax in Alabama.
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