Alabama Gov. signs first tax break in more than a decade

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MONTGOMERY, Ala. (AP) – Gov. Kay Ivey has signed into law a tax break bill that raises the threshold for claiming state income tax exemption.

The act sponsored by state Sen. Del Marsh, a Republican, raises the income threshold from $20,000 to $23,000 for married couples filing jointly, heads of households, and single filers. For married individuals filing separately, it rises from $10,000 to $10,500.

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It’s Alabama’s first tax break since 2006. A statement from the governor said it will save taxpayers $40 million over the next decade.

Ivey said the act gives low-income and middle-income Alabamians much needed relief on their taxes with the state’s economy booming.

The Alabama House and Senate both unanimously passed the bill. The act was immediately effective after being signed Thursday.



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