MONTGOMERY, Ala. (AP) - Small businesses in Alabama are going to get a tax break on their health insurance costs starting Jan. 1.
Gov. Bob Riley signed tax break legislation into law during a ceremony at the Capitol on Tuesday.
The governor pushed the tax break in the recent special session of the Legislature. The goal is to make health insurance more affordable so that more small businesses will offer it as an employee benefit.
The legislation will allow businesses with fewer than 25 employees to deduct from their state income taxes 150 percent of the amount they pay for health insurance for employees.
Small business employees who earn less than $50,000 annually will be able to deduct from their state income taxes 150 percent of what they pay toward their health insurance.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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