HB505 Alabama 2016 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2016

Title

Taxation, suspending tax credits when Governor declares proration of the General Fund or Education Trust Fund or General Fund Appropriation Act or Education Trust Fund Appropriation Act

Summary

This bill would suspend tax credits for a tax year if the Governor prorates the General Fund or Education Trust Fund or if those funds are level-funded based on the prior year's appropriations.

What This Bill Does

If proration or level funding is in effect, any tax credit earned in that tax year would be suspended for that year. The suspension applies to credits claimed in the year the proration is declared or the appropriation acts are level funded. This changes current law, which does not allow suspension of tax credits under proration or level funding. The act would take effect January 1, 2017.

Who It Affects

• Taxpayers (individuals and businesses) who earned tax credits in the tax year when proration is declared or when appropriations are level funded; their credits would be suspended for that year.
• State tax authorities and agencies that administer and process tax credits, which would implement and enforce the suspension for those tax years.

Key Provisions

• Section 1: If the Governor declares proration of the General Fund or Education Trust Fund, or if the General Fund Appropriation Act or the Education Trust Fund Appropriation Act is level funded based on the prior year act, any tax credit earned in that tax year shall be suspended for that tax year.
• Section 2: This act becomes effective January 1, 2017.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation