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Committee extends state ABLE Act tax deduction; bill given favorable report
Summary
The committee voted to give a favorable report to HB 52, which would remove a 2025 sunset on Alabama’s ABLE tax deduction program that mirrors the federal ABLE Act, allowing qualified Alabamians with disabilities to save in tax-advantaged accounts.
A committee member introduced HB 52, described in committee as the state’s ABLE program legislation; the bill would remove a sunset on state tax provisions that support ABLE accounts. The presenter described ABLE as “achieving a better living experience” accounts and said existing law includes a sunset set for 2025 that this bill would delete.
Treasurer Young Boozy addressed the committee to explain the program’s purpose and operation, describing the federal ABLE Act (2014) and Alabama’s program passed in 2017. The treasurer said the state program has about 1,300 accounts and roughly $7,000,000 in assets under management and explained the policy rationale: before the federal ABLE program, beneficiaries risked losing means-tested benefits if they saved more than $2,000.
“It's quite like the college counts 529 program,” the treasurer said, noting ABLE accounts use the same section of the Internal Revenue Code and that the state’s bill provides a tax deduction (the presenter described $5,000 for single filers, $10,000 for joint filers as the deduction amounts).
Senators asked clarifying questions about eligibility and the cap on accounts. Senator Stutz asked about the rationale for a savings cap; the treasurer and committee presenters said the cap aligns with federal limits and the current program structure. After questions, the committee moved the bill and used a roll call; the chair announced the bill was “given a favorable report.”
Votes at a glance: HB 52 — committee action: favorable report; outcome: advanced from committee.
