Ivey signs middle-class tax cut bill

Source: MGN

MONTGOMERY, Ala. (WTOK) - Alabama's governor has signed into law a bill that provides the biggest tax break for the state's middle-class in over a decade.

According to Kay Ivey's office, the new law raises the threshold for claiming the maximum exception for state income taxes.

For married couples filing jointly, heads of households, and single filers, the income threshold would be raised from $20,000 to $23,000. For married individuals filing separately, the threshold would be raised from $10,000 to $10,500.

The overall impact of the bill is projected to be a $40 million savings for taxpayers over the next 10 years.

The Alabama Senate unanimously passed the bill in January and the Alabama House unanimously passed the bill Mar. 8.

The act became effective immediately when it was signed by the governor.