By Attorney Raven Beach
Happy New Year! As we start a new calendar year, there are three important changes to Alabama laws you may want to know about. These include stricter rules for consumable hemp products, new income tax rules for nonresident workers, and updates to child tax credits. Also, Social Security recipients are seeing a cost-of-living increase under federal law. Here’s a closer look at these changes:
Consumable Hemp Product Regulations (House Bill 445): This law sets stricter rules for selling and distributing hemp products like edibles, drinks, and topicals. The Alabama Alcoholic Beverage Control Board now oversees these products, which can only be sold to adults 21 and older. Edibles and drinks are limited to 10 milligrams of THC per serving, and drinks cannot be larger than 12 fluid ounces, which is the size of a standard soda can. Smokable hemp products are now completely banned. Possessing marijuana remains illegal, and it is still considered contraband that can be seized without a warrant.
Nonresident Income Tax (House Bill 379): This law gives nonresident employees who work in Alabama for 30 days or less in a single calendar year with an income tax exemption. They will not owe Alabama income tax if they work in other states. The bill is to provide a safe harbor and to reduce paperwork for those who might employ traveling employees or remote workers. The bill does not apply to professional athletes, entertainers, or paid public figures.
Child Care Tax Credits (House Bill 358) – This law creates an expansion of tax credits to improve the availability of affordable, quality childcare in Alabama. The bill, co-sponsored by Representative Anthony Daniels of Huntsville, is expected to help increase workforce participation and improve the overall well-being of families in Alabama. The purpose is to give employers, childcare businesses, and non-profits incentives to expand child care through grants and tax credits.
Federal Social Security increase: Social Security recipients received a 2.8% cost-of-living increase. The social security earnings test, wage cap, and maximum benefit also increased. However, Medicare Part B premiums rose by approximately $18 monthly. Seniors should plan and budget accordingly.
PLEASE NOTE OUR NEW PHYSICAL ADDRESS BELOW
Raven Perry-Beach, Esq.
107 Jefferson St.
Suite 14
Huntsville, AL 35801
(256) 799-0292
* Licensed in Alabama, Tennessee, Massachusetts, and DC
