Alabama Governor Kay Ivey on Thursday signed House Bill 527 into law, providing tax relief through an overtime pay deduction and a temporary grocery tax break.
The measure, sponsored by James Lomax and carried in the Senate by Arthur Orr, allows workers to deduct up to $1,000 in qualified overtime income from state taxes for tax years 2026 through 2028.
It also suspends the state’s portion of the grocery tax for two months, from May 1 through June 30, 2026.
