Montgomery, AL – A committee of the Alabama House has approved bills that would give a tax break to small businesses and make sure Alabama citizens don't have to pay state income tax on their federal economic stimulus checks.
The House Education Appropriations Committee used a voice vote Wednesday to approve a bill that would make sure the stimulus checks are tax free. That would save Alabama taxpayers' $57 million.
The committee also approved a bill that would let small businesses with 25 or fewer employees deduct on their state taxes 150 percent of what they pay for employees' health insurance. They can currently deduct 100 percent. The bill also would apply the higher deduction to employees' health insurance payments. The deduction is limited to employees who make $50,000 or less annually.
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