The Alabama House of Representatives passed HB527 on Tuesday, delivering an Alabama overtime tax cut of up to $1,000 on qualified overtime pay and adding a 60-day grocery tax holiday, combining for a total fiscal impact of $83.4 million.

HB527, sponsored by State Rep. James Lomax (R-Huntsville), would allow taxpayers to deduct up to $1,000 in overtime pay from their state taxable income each year beginning in 2026. The deduction expires after 2028 unless extended.

The bill’s initial fiscal note was $37.4 million. State Rep. Mike Shaw (R-Hoover) offered an amendment on the floor to attach the 60-day grocery tax holiday, bringing the total fiscal note to $83.4 million.

The bill mirrors President Trump’s “no tax on overtime” policy included in the One Big Beautiful Bill Act, applying similar relief at the state level.

“The men and women working overtime shifts to provide for their families are also providing a significant boost to our state’s economy,” Lomax said. “I am proud to carry this legislation in an effort to support and thank them.”

The grocery tax holiday builds on existing legislative action on food costs. In 2023, the Legislature reduced the state grocery tax from 4 percent to 3 percent. During the 2025 session, the House accelerated that effort by cutting it further to 2 percent.

Alabama families are already saving roughly $236 a year from that existing cut, and the temporary two-month suspension of the remaining 2 percent would deliver roughly $40 in additional immediate relief for a typical family of four.

House Speaker Nathaniel Ledbetter (R-Rainsville) said the measure reflects a broader legislative push on affordability.

“With fuel prices surging and the price of beef and other essential items at the grocery store nearing all-time highs, it is imperative that state leaders double down on our efforts to lend a helping hand to Alabamians,” Ledbetter said. “Over the course of the last few weeks, I have worked with Governor Ivey and Senate leadership to determine the most expedient and impactful way to provide targeted relief, and we have determined that a 60-day grocery tax holiday presents the best opportunity to lift up every single Alabama family.”

Since 2022, the Alabama Legislature has delivered more than $1.4 billion in tax cuts to working families and retirees statewide. HB527 now moves to the Senate for consideration.

Tuesday was the 25th legislative day. There are five days remaining in the session.

Sawyer Knowles is a capitol reporter for Yellowhammer News. You may contact him at [email protected].

MONTGOMERY, Ala. (AP) — Alabama Gov. Kay Ivey was hospitalized Tuesday after undergoing what her office described as a minor procedure to remove fluid that was pressing on her lung.

The 81-year-old Republican governor will be monitored at Baptist Medical Center South in Montgomery “in the coming days” out of an abundance of caution, Ivey spokeswoman Gina Maiola said in a statement.

The fluid was discovered after Ivey went to her doctor because she was feeling discomfort in her left side and had recently experienced some shortness of breath.

“While it was not emergent, Governor Ivey wanted to get the procedure done as soon as possible so she can quickly get back to 100% to wrap up the 2026 Regular Session,” Maiola said. The legislative session is in its final days.

Her office did not specify how long the governor will be in the hospital or recovering.

“We are in touch with Governor Ivey, and she says she is determined to make a very speedy and full recovery.” Maiola said.

Ivey announced in 2019 that she was undergoing radiation for lung cancer. The governor described it as a small localized spot. Her office said in 2020 that scans indicated the treatment was successful and she was free of disease.

TUSCALOOSA, Ala.— Alabama is having to replace a lot of its production up front on the defensive line from a year ago with LT Overton and Tim Keenan III off to the NFL and Keon Keeley, James Smith, Qua Russaw and Kelby Collins off to other schools out of the transfer portal.

Because of that, Kalen DeBoer and his staff were able to bring in some help from the portal themselves. Junior running back Daniel Hill has to go up against those guys every day in spring practice, and two of the transfers have been the biggest surprises to him along the defensive front.

“Thompkins from USC,” Hill said. “He’s a really good player. Des from South Carolina. Those two are really great players.”

Devan Thompkins spent three seasons at USC before transferring to Alabama this spring. Last year with the Trojans, he had 31 total tackles, including three sacks and a forced fumble. Desmond Umeozulu played in 36 games over three seasons at South Carolina, recording 30 total tackles with 2.5 for loss. Alabama also added 6-5, 319-pound defensive lineman Terrance Green from Oregon.

Alabama head coach Kalen DeBoer was asked about the new transfers up front after the Crimson Tide’s first scrimmage.

“A lot of potential to set the front, let them play ball. Not have to utilize pressures and blitzes all the time to cause chaos in the backfield. The ability to stop the run with the four and, obviously, the linebackers and your support is there to help. So we have certainly a bigger group of guys than what we’ve had in the past. And last year, probably our biggest struggle against the run game was on the edges.

“Our system lends to making sure balls don’t get out there very often in the run game. But even in the last game, you saw people just running right down the middle of our defense. And we wanna be able to mix things up, but we also wanna be able to just play base with the guys and our personnel. I think with those guys you mentioned, they’re gonna allow us to do that. They still got a ways to go, but I like the direction we’re headed.”

While Alabama did lose some key pieces from last year’s front seven, the Crimson Tide does return sacks leader Yhonzae Pierre as well as defensive lineman London Simmons, who played in all 15 games as a true freshman last season. Jeremiah Beaman and Edric Hill are also back for the Tide.

“We’ve got some guys that are dogs,” Alabama safety Keon Sabb said of the Crimson Tide’s defensive front. “At Bama, you want guys that really compete, and I feel like through the transfer portal and the younger guys, I think we found that.”

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