Alabama’s overtime tax exemption expires as lawmakers opt for broader tax relief

 A temporary income tax exemption on overtime pay officially expired on June 30 after Alabama lawmakers declined to extend it during the legislative session. The policy, first enacted in 2023, aimed to increase workforce participation and provide additional financial support to hourly workers, particularly in industries such as manufacturing, healthcare, and public safety. House Bill 467, sponsored by House Minority Leader Anthony Daniels (D-Huntsville), sought to make the exemption permanent by removing its sunset clause. The proposal had bipartisan support and backing from policy groups such