Institute on Taxation and Economic Policy (ITEP)

Alabama

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State-by-State Tax Expenditure Reports

• By ITEP Staff

Below is a list of tax expenditure reports published in the states.

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State Rundown 5/14: Fund Priorities or Increase Shortfalls?

• By ITEP Staff

As many legislative sessions end, lawmakers are revealing their priorities.

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State Rundown 4/23: While Some States Stop Digging, Others Move Full Steam Ahead with Anti-Affordability Agendas

• By ITEP Staff

Missouri lawmakers passed legislation that will have residents vote on a proposal at the ballot box. The ask: for them to pay more in sales taxes to offset cuts – and the possible elimination – of the state's individual income tax, which makes up nearly two-thirds of Missouri’s general fund.

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Tax Break for Ultra-wealthy Investors Takes a Hit in Maine and Oregon

• By Nick Johnson

Policymakers in Maine and Oregon wisely said “no” last week to an income tax break for deep-pocketed tech investors and venture capitalists that was expanded in last year’s federal tax bill.

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State Rundown 4/8: Budget and Tax Packages Take Shape as Sine Die Approaches in Many States

• By ITEP Staff

State legislative sessions are wrapping up, and final tax and budget packages are making their way to governors’ desks.

State Tax Watch 2026

• By ITEP Staff

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

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State Rundown 4/1: No Fooling Around Anymore in Washington, But Cruel Pranks in South Carolina

• By ITEP Staff

In Washington, Gov. Bob Ferguson and lawmakers decided to stop fooling around with one of the nation’s most upside-down tax codes and finally brought to life a new millionaires’ tax, the first new income tax created in a state since 1991.

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These States Are Most Impacted by the Spike in Gas Prices

• By Carl Davis

The recent spike in gasoline prices is on pace to cost American drivers an extra $9.4 billion per month. Gas prices are up dramatically across the country, but the South has been hit hardest and is on pace to pay $4.2 billion more per month.

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State Rundown 3/4: Budget Realities Set In

• By ITEP Staff

As many state legislative sessions near or cross the halfway point, lawmakers are facing tough choices.

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State Rundown 2/25: Sausage-Making Season Is Upon Us

• By ITEP Staff

National Sausage Month isn’t until October, but now is the time of year when state lawmakers are really diving into their sausage-making processes, as separate legislative houses and oftentimes political parties send competing bills, budgets, and visions back and forth to grind out their differences.

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State Rundown 2/19: Necktie (NCTI) Offers a Way Out of a Knotty Situation

• By ITEP Staff

State lawmakers are grappling with a range of challenges as their fiscal outlooks deteriorate, federal tax enforcement wanes (after the Trump administration cut the IRS workforce by 25 percent), and a rewritten federal tax code sends states scrambling to decide what changes they might want to make in their own codes.

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State Rundown 1/14: New Year Brings New Resolutions for Funding Key Priorities

• By ITEP Staff

State governors are beginning to lay out their top priorities as legislatures reconvene in statehouses around the country.

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State Rundown 12/10: ‘Tis the Season to Reclaim Lost Revenue

• By ITEP Staff

property tax debates are taking place throughout the nation.

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Linking to Tipped and Overtime Income Deductions Would Worsen State Shortfalls, Do Little to Help Workers

• By Neva Butkus, Galen Hendricks

State deductions for tips and overtime are not only ineffective at supporting working-class people, it will come at a substantial cost to state budgets.

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State Rundown 11/24: States Say ‘No Thank You’ to Federal Tax Cuts Reducing State Revenue

• By ITEP Staff

Lawmakers in two more states have wisely said “no thank you” to federal tax cuts that would have flowed through to their state tax codes and undermined funding for their priorities

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States Begin Decoupling from Flawed ‘QSBS’ Tax Break

• By Nick Johnson, Sarah Austin

A costly tax break for wealthy venture capitalists is drawing some critical attention from state policymakers.

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Quite Some BS: Expanded ‘QSBS’ Giveaway in Trump Tax Law Threatens State Revenues and Enriches the Wealthy

• By Sarah Austin, Nick Johnson

States should decouple from the federal Qualified Small Business Stock (QSBS) exemption.

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State Rundown 9/4: Colorado Tackles Offshore Corporate Tax Avoidance, Paves Way for State Conformity Best Practices

• By ITEP Staff

Despite an increasingly bleak state revenue outlook, state lawmakers across the country continue to prioritize regressive tax cuts.

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Trump’s Tax Law Clobbers State Budgets. Now’s the Time to Prepare.

• By ITEP Staff

The Trump megabill hands the richest 1% a trillion-dollar windfall while gutting funding for health care, education, and disaster relief — leaving communities to pick up the pieces. State and local leaders must step up, tax the wealthiest fairly, and safeguard the essentials that keep America healthy, educated, and safe.

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State Rundown 7/24: States Begin Preparing for Federal Megabill Fallout

• By ITEP Staff

All eyes in statehouses in recent weeks have been on federal budget negotiations, and now that the “megabill” has passed, they are focused in on their own budgets in search of ways to cope with the enormous consequences coming their way. All states will see fewer federal dollars flowing through their coffers, higher needs due […]

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How Will the Trump Megabill Change Americans’ Taxes in 2026?

• By Steve Wamhoff, Michael Ettlinger, Carl Davis, Jon Whiten

The megabill will raise taxes on the poorest 40 percent of Americans, barely cut them for the middle 20 percent, and cut them tremendously for the wealthiest Americans next year.

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Sales Tax Holidays Miss the Mark When it Comes to Effective Sales Tax Reform

• By Miles Trinidad

Sales tax holidays are often marketed as relief for everyday families, but they do little to address the deeper inequities of regressive sales taxes. In 2025, 18 states offer these holidays at a collective cost of $1.3 billion.

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How Much Would Every Family in Every State Get if the Megabill’s Tax Cuts Given to the Rich Had Instead Been Evenly Divided?

• By Michael Ettlinger

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

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State Rundown 7/8: State Tax Cuts Continue Despite Federal Megabill Passing

• By ITEP Staff

The last states are wrapping up legislative sessions, and some are crossing the finish line with major income tax cuts.

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Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates

• By Steve Wamhoff, Carl Davis, Joe Hughes, Jessica Vela

President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.