Alabama House Bill HB445

Alabama 2026 Regular Session

• Introduced: 2/12/26
• Refer: 2/12/26

Caption

Relating to gross income; to amend Section 40-18-14, Code of Alabama 1975; to exclude difficulty of care payments from gross income

Impact

If enacted, HB445 would change the way gross income is defined under Section 40-18-14 of the Code of Alabama 1975. This change would allow individual care providers participating in Medicaid Waiver programs to receive payments without having those payments counted as taxable income. This adjustment is expected to provide significant financial relief to caregivers, many of whom are family members providing support to their loved ones, thereby promoting the sustainability of in-home care options for Medicaid beneficiaries.

Summary

House Bill 445 aims to amend the Alabama Code relating to gross income as defined for the purpose of state income tax. The bill specifically seeks to exclude payments made under certain Medicaid Home and Community-Based Services Waiver programs to individual care providers from the calculation of gross income. By implementing this exclusion, the bill intends to alleviate the tax burden on caregivers who provide essential services under these Medicaid programs, effectively recognizing their contributions to the healthcare system.

Contention

Notably, discussions surrounding HB445 may address the implications of excluding such payments from gross income. While supporters may argue that the bill is a necessary support mechanism for caregivers and aligns with the state’s commitment to promote home-based care solutions, critics may raise concerns about the fiscal implications for the state's tax revenue. Furthermore, the scope of the exemption and its potential to expand or limit services provided under Medicaid could also be points of contention in the legislature.