The legislature wrapped up its 30th and final day of the session late Wednesday night, just before midnight, by giving final approval to Governor Kay Ivey’s ‘Back the Blue’ bill—a cornerstone of her broader public safety initiative, Safe Alabama. This legislation is designed to strengthen protections for law enforcement officers and promote greater safety in communities throughout the state.
The Business Council of Alabama (BCA) is proud to report the successful conclusion of the 2025 legislative session, marked by significant achievements that support Alabama’s workforce, strengthen our business climate, and guard against burdensome regulations. Through strategic advocacy and strong partnerships, BCA played a critical role in advancing policies that benefit both employers and employees across the state.
Here’s a summary of key legislative wins and issues from this session:
• Powering Growth Initiative: A transformative three-bill package designed to bolster Alabama’s energy infrastructure and enhance economic competitiveness. This initiative encourages private investment, accelerates infrastructure development, and removes regulatory roadblocks — all without raising taxes.
• Remote Worker Income Tax Exemption (HB379): This bill exempts out-of-state remote workers from Alabama income tax if they work in the state for fewer than 30 days annually, making Alabama a more attractive destination for remote work and business travel.
• Tax Relief for Small Businesses (HB543): This legislation raises the state ad valorem tax exemption threshold on tangible personal property from $40,000 to $100,000 in market value. It delivers meaningful tax relief and greater flexibility for small businesses statewide.
• Alabama Growth Alliance – Rural Development Focus: A Senate Joint Resolution enhances the Alabama Growth Alliance — originally created under the 2024 Working for Alabama initiative — by directing it to develop a strategic rural development plan. Focus areas include rural healthcare, workforce readiness, and infrastructure improvement.
• Pharmacy Benefit Manager (PBM) Reform: While the final PBM bill includes provisions expected to increase costs for employers and employees, BCA worked tirelessly to mitigate its impact. Most notably, we successfully minimized the bill’s financial impact and secured the removal of a proposed private right of action — a crucial safeguard that protects Alabama businesses from unnecessary and costly litigation.
• Debanking Legislation Defeated: Proposed “debanking” bills that would have created expansive private rights of action based on ideological discrimination failed to advance. BCA strongly opposed this legislation due to its potential for excessive government overreach and unintended legal and financial consequences for businesses. Had these bills passed, they would have created new legal liabilities and regulatory uncertainty for banks, insurers, and payment processors — driving up costs for Alabama businesses and consumers alike.
BCA remains committed to fostering a business-friendly environment that drives innovation, investment, and job creation in every corner of our state. Thank you for your continued support as we work to make Alabama the best place to live, work, and do business.
Bill: SB22
Sponsor: Sen. Merika Coleman
BCA Position: Monitor
Status: Currently indefinitely postponed
Additional Information: This bill further provides for the recapture of incentives for a company who is found guilty of human trafficking.
Bill: SB187
Sponsor: Sen. Clyde Chambliss
BCA Position: Monitor
Status: Currently indefinitely postponed
Additional Information: This bill would require app store providers to verify user ages, link minor accounts to parent accounts with consent, and notify users of significant app changes. It would mandate protection of age verification data and prevent enforcing contracts with minors or sharing personal data. Developers would be required to verify ages, notify users of app changes, and comply with age data regulations. The Attorney General would adopt rules and could take action for violations as deceptive trade practices.
Bill: SB228/HB418
Sponsor: Sen. Andrew Jones/Rep. Jamie Kiel
BCA Position: Opposed
Status: Currently indefinitely postponed
Additional Information: This bill would create a new private right of action that individuals and corporations can use to claim discrimination on a wide variety of subjective ideological grounds. The bill represents a significant government encroachment into how certain financial institutions, insurers, credit card companies, and payment processors assess risk and make business decisions, determinations that are already subject to numerous federal laws and regulations. Importantly, even if the Alabama Banking Department or Alabama Insurance Department investigates a discrimination complaint and finds no violation, this bill still would give a complainant the ability to seek and recover treble damages, attorneys’ fees, and injunctive relief in civil court.
Bill: SB252
Sponsor: Sen. Billy Beasley
BCA Position: Opposed
Status: Enacted by Governor Kay Ivey
Additional Information: This bill would impose a $10.64 dispensing fee on all prescriptions, excluding specialty drugs, filled by independent pharmacies in Alabama.
Bill: SB304 – Powering Growth Act
Sponsor: Sen. Arthur Orr
BCA Position: Support
Status: Enacted by Governor Kay Ivey
Additional Information: This bill would create the Alabama Energy Infrastructure Bank under the State Industrial Development Authority (SIDA) to provide financing for energy infrastructure projects that support economic development and industrial recruitment, accelerate deployment of long-lead time energy equipment, and create a Strategic Energy Infrastructure Development Fund to procure long-lead time equipment and fund site-specific infrastructure upgrades.
Bill: SB311
Sponsor: Sen. Josh Carnley
BCA Position: Support
Status: Enacted by Governor Kay Ivey
Additional Information: This bill would streamline the permitting process for work on state-controlled rights-of-way, specifically for electric transmission projects. It sets firm deadlines for the Alabama Department of Transportation (ALDOT) permit approvals, allows automatic approval if deadlines are not met, and requires regular coordination between electric providers and ALDOT to improve efficiency and predictability.
Bill: SB313
Sponsor: Sen. Rodger Smitherman
BCA Position: Support
Status: Enacted by Governor Kay Ivey
Additional Information: This bill proposes that any revenues in the Alabama 21st Century Fund not needed to pay debt service on the authority’s bonds shall be transferred to, and used by, the State Industrial Development Authority (SIDA) for the authorized purposes of the Alabama Energy Infrastructure Bank.
Bill: SB315
Sponsor: Sen. Bobby Singleton
BCA Position: Support
Status: Currently indefinitely postponed
Additional Information: This bill would allow the Alabama 21st Century Fund revenues to be used to pay other project costs and debt service on bonds issued by the State Industrial Development Authority (SIDA). This bill would also transfer $5,000,000 from the Alabama 21st Century Fund to the Alabama Department of Commerce to establish additional international offices, enhance rural development strategies, and cover operational and personnel costs.
Bill: HB283
Sponsor: Rep. Mike Shaw
BCA Position: Monitor
Status: Currently indefinitely postponed
Additional Information: This bill would allow consumers to confirm, correct, delete, or obtain a copy of their personal data and opt out of its processing. It would require controllers to provide a secure method for consumers to exercise their rights and establish an appeals process. Consumers could designate an authorized agent to act on their behalf. The bill would also regulate how controllers process personal and deidentified data.
Bill: HB291
Sponsor: Rep. Neil Rafferty
BCA Position: Opposed
Status: Currently indefinitely postponed
Additional Information: This bill would repeal the Alabama Uniform Minimum Wage and Right-to-Work Act.
Bill: HB379
Sponsor: Rep. Danny Garrett
BCA Position: Support
Status: Enacted by Governor Kay Ivey
Additional Information: This bill would exempt remote workers from paying state income tax under certain circumstances.
Bill: HB477
Sponsor: Rep. David Faulkner
BCA Position: Monitor
Status: Enacted by Governor Kay Ivey
Additional Information: This bill allows a nonprofit agricultural organization to provide health benefits to its members and their families. The proposed bill explicitly authorizes a nonprofit agricultural organization to provide such benefits while maintaining that they are not in the business of health insurance.
Bill: HB543
Sponsor: Rep. Chip Brown
BCA Position: Support
Status: Enacted by Governor Kay Ivey
Additional Information: This bill would increase the market value threshold amount for which tangible personal property is exempt from the state ad valorem tax.
Bill: HB535
Sponsor: Rep. Ontario Tillman
BCA Position: Opposed
Status: Currently indefinitely postponed
Additional Information: This bill would provide unemployment benefits to employees who are locked out by their employer during a labor dispute. Currently, employees are disqualified from receiving unemployment benefits if they are part of a labor dispute, but this bill would create an exception for lockouts.
Capitol Briefing ‘Powering Growth’ Package Advances to Governor Ivey for Signature The Alabama Legislature has completed its 28th and 29th legislative days of the 2025 session. During this time, the
Capitol Briefing House Passes Powering Growth Package The Alabama Legislature has made significant progress on the Powering Growth package, a forward-looking set of bills aimed at strengthening the state’s energy
Capitol Briefing Senate Passes ‘Powering Growth’ Package to Strengthen Alabama’s Energy Future The Senate has given final approval to Powering Growth, a legislative package aimed at boosting Alabama’s energy security
