Ala. Code
Code of Alabama

Ala. Code § 31-13-16 (2026)

Certain Business Expense Deductions Prohibited.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(a) No wage, compensation, whether in money or in kind or in services, or remuneration of any kind for the performance of services paid to an unauthorized alien shall be allowed as a deductible business expense for any state income or business tax purposes in this state. This subsection shall apply whether or not an Internal Revenue Service Form 1099 is issued in conjunction with the wages or remuneration.

(b) Any business entity or employer who knowingly fails to comply with the requirements of this section shall be liable for a penalty equal to 10 times the business expense deduction claimed in violation of subsection (a). The penalty provided in this subsection shall be payable to the Alabama Department of Revenue.

(Act 2011-535, p. 888, §16.)

Notes of Decisions
Cited in 1 case, 2012–2012 · leading case: United States v. State of Alabama, 691 F.3d 1269 (11th Cir. 2012).
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United States v. State of Alabama, 691 F.3d 1269 (11th Cir. 2012). “Ala.Code § 31-13-16(a). An employer who knowingly fails to comply with this requirement is “liable for a penalty equal to 10 times” the deduction claimed.”
— Ala. Code § 31-13-16(a) — 1 case
United States v. State of Alabama, 691 F.3d 1269 (11th Cir. 2012). “Ala.Code § 31-13-16(a). An employer who knowingly fails to comply with this requirement is “liable for a penalty equal to 10 times” the deduction claimed.”
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