Alabama GOP Pushes Forward Major Tax Cut Package, Focuses on Grocery and Business Relief
AL Senate poised to vote on $200 million legislation as part of broader Republican agenda
The Alabama Republican Party (ALGOP) is intensifying its efforts to pass a sweeping tax relief package that targets grocery costs and business taxes. After clearing the Alabama House of Representatives in March, the legislation is now under consideration in the State Senate, where it could pass as early as this week.
The $200 million package includes a reduction in the state’s grocery tax, expanded income tax cuts, relief for small businesses, and targeted benefits for seniors. The proposal builds on a 2023 initiative that lowered the grocery tax by 1%. The current legislation seeks to cut the tax further—from 3% to 2%—potentially saving Alabama families an estimated $123 million annually.
“Our focus has always been on delivering real, lasting tax relief for the people of Alabama — families, seniors, and job creators alike,” said Alabama Republican Party Chairman John Wahl in a press release on 4/28. “One of our top priorities is cutting the grocery tax and making sure every single person in Alabama gets some help making ends meet. It’s time to let people keep more of their own money."
In addition to the grocery tax cut, the package includes reductions in income taxes and pro-business tax reforms. Wahl praised Senate leadership for working with the party to advance legislation that aims to bolster economic growth.
“By working with Senate leadership to include pro-business tax cuts in this package, Alabama Republicans are also making sure our state continues to be a place where businesses can grow, invest, and create good-paying jobs,” Wahl added. “I am thankful for the vision of the State Senate in adding these important cuts for our citizens and job creators.”
The Alabama GOP has framed the legislation as part of a broader commitment to fiscal responsibility and economic development. According to the party, Republican lawmakers have delivered approximately $1.4 billion in tax cuts since 2021.
“With the inclusion of business tax cuts, the package represents a comprehensive approach to economic strength and fiscal responsibility, as well as providing immediate tax relief to the people of Alabama,” Wahl said. “Now is the time to put people first again.”
The bills will need action soon, as there are only four legislative days remaining in this session.
