Montgomery, AL – The Alabama House has approved a bill to exempt federal economic stimulus checks from state income taxes, saving residents about $57 million.
But the bill removes an incentive for businesses that's offered in the federal tax rebate package.
The federal package allows businesses to increase the amount that they deduct for the depreciating value of equipment. But the House voted to allow businesses to take only the current deduction.
The bill now goes to the Senate for debate.
The Senate earlier passed a similar bill, but House leaders said they felt that bill was unconstitutional because revenue bills are supposed to start in the House.
(Copyright 2008 by The Associated Press. All Rights Reserved.)