International wire transfers; fee on wire transfers imposed with proceeds for ELL instructors; income tax credit for wire transfer fees paid, authorized; Securities Commission and Revenue Department to administer
HB192 would impose a 2% fee on outgoing international electronic wire transfers handled by money transmission businesses in Alabama beginning January 1, 2026. The bill requires the business to disclose the fee on the customer’s receipt, report transfer activity to the Alabama Securities Commission, and remit collected fees quarterly to the Commission for deposit into the Education Trust Fund. Those funds would be used exclusively to hire English Language Learner (ELL) instructors through local boards of education.
The bill also creates an Alabama income tax credit for taxpayers equal to the international wire transfer fees they paid under the act, capped at $5,000 per tax year. To claim the credit, taxpayers must submit the transfer receipts with their return, and the credit is nonrefundable and cannot be carried forward. The Department of Revenue must create a notice for customers explaining the potential credit, while both the Securities Commission and the Department of Revenue are authorized to adopt rules and administer the program.
HB192 would amend the practical regulation of money transmission businesses in Alabama by adding a new fee collection, reporting, and remittance requirement specifically for outgoing international wire transfers. It would also create a new income tax credit under the state income tax code for individuals and certain pass-through entities that pay the fee, while directing the resulting fee revenue to the Education Trust Fund for ELL instructor hiring. The bill would require administrative coordination between the Alabama Securities Commission and the Department of Revenue and would take effect July 1, 2025, with the fee and credit provisions beginning January 1, 2026.
Based on the bill’s caption and committee placement, the measure appears to be framed as an education funding proposal tied to wire transfer activity, with an offsetting tax credit intended to reduce the burden on taxpayers who pay the fee. No votes or committee transcript are provided, so there is no recorded floor or committee debate to indicate broader support or opposition. The available context suggests the bill was still pending in the House committee process and had not yet advanced to a recorded vote.
The main policy tension in HB192 is between raising dedicated revenue for ELL instructors and imposing a new fee on international remittances, which may affect customers who send money abroad, including immigrant and low-income households. Supporters would likely emphasize the education funding purpose and the tax credit as a mitigation measure, while opponents may question whether the fee is effectively a tax on remittances, whether it could discourage lawful international transfers, and whether the administrative burden on money transmission businesses and state agencies is justified. The bill’s requirement that customers prove fee payment to claim the credit may also be seen as a compliance hurdle.