NFIB’s Elebash: Small Business Relief and Revitalization Act a big victory for Alabama

Small business is the foundation of Alabama’s economy. They account for 99.4% of all businesses in the state, and they employ 47% of the state’s private-sector workforce.

That’s why we’re so grateful to Governor Ivey for signing House Bill 82, the Small Business Relief and Revitalization Act of 2022. The measure, introduced by Rep. Danny Garrett (R-Trussville), provides immediate tax relief for Alabama’s job creators.

H.B. 82 does several things:

• Provides relief by reducing the estimated sales tax payment burden on more than 2,400 small businesses through increasing the threshold calculation from $2,500 to $5,000 and allowing sales tax licensees the option of payment of certified funds in lieu of securing a surety bond.
• Exempts up to $40,000 of market value from the state business personal property tax, which effectively exempts 75% of Alabama businesses from payment of the state portion of this tax.
• Helps farm families by ensuring that the loan forgiveness provided under the American Rescue Plan is not treated as income on their state taxes and doesn’t factor into determining their federal income tax deduction.
• Gives a one-month filing extension on tax returns for the Alabama financial institution excise tax and corporate income tax.

This relief is critical to Alabama’s small businesses because they’ve been put through the wringer the past two years. Coping with the COVID-19 pandemic was a challenge, but just as it appeared things were getting better, they had to contend with the Omicron variant, the labor shortage, breaks in the supply chain, and rising inflation.

Kevin Kuhlman, NFIB’s executive vice president for federal government relations, says, “Small businesses across the country are feeling the impact of the highest inflation rate in 40 years. For most small business owners, this is a new and challenging environment that they have to navigate along with the ongoing labor shortage and supply chain disruptions.”

HB82 will without a doubt relieve some of the financial pressure and regulatory burden bearing down on Alabama’s small businesses. On behalf of our members, I want to thank Lt. Gov. Will Ainsworth, Representative Garrett, and Sen. Garlan Gudger of Cullman, who guided the bill through the legislature. This is a big victory for small business owners, their families, and their employees, and it will enable small businesses not just to survive but thrive.

Rosemary Elebash is the National Federation of Independent Business’ state director for Alabama.