Montgomery, AL – Alabama's new governor has started trying to keep a campaign promise to close business tax loopholes that are costing the state millions of dollars in lost revenue.
Gov. Robert Bentley's administration has proposed a change in tax rules that would generate an estimated $30 million next year from medium-size corporations and from partnerships that operate in multiple states, including Alabama.
Tax officials say Alabama is the only state that allows multi-state businesses to report only their income from Alabama, but take a deduction for 100 percent of the federal income taxes paid on the total business income. Bentley's plan calls for Alabama to start using the same rules as other states.
Bentley's spokeswoman says the administration is looking at a few other loopholes that could generate $46 million annually.
(Copyright 2011 by The Associated Press. All Rights Reserved.)