Governor delivers tax relief to small businesses

Special to the Enquirer 

Gov. Kay Ivey has signed House Bill 391 into law, providing relief from the business privilege tax for Alabama small businesses.  

The exemption will provide relief to more than 230,000 small businesses across Alabama, according to the governor’s office. 

“Alabama’s small businesses are the soul of our economy, and as long as I am your governor, I will continue to be a champion for these hard-working men and women. We are providing real relief to our small businesses,” said Ivey.  

When fully implemented, the exemption is projected to save the state’s small businesses an estimated $23 million a year. Beginning in tax year 2023, this new law cuts the $100 minimum business privilege tax in half to $50 for small businesses, and it completely exempts small businesses from the minimum tax beginning in 2024, according to the governor’s office. 

Currently the Alabama Business Privilege Tax levies a minimum of $100 annually on corporations, limited liability entities and other businesses in Alabama. The tax remains due every registered year until the entity is legally dissolved, regardless of whether or not such entity is actively doing business in Alabama.