SB4 Alabama 2020 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2020

Title

Toll road and bridge fees, income tax credit for state taxpayers for payments to Ala. Toll Road, Bridge, and Tunnel Authority, Revenue Dept. authorized to adopt rules, funds transferred from sales tax revenue to cover

Summary

SB 4 creates an Alabama income tax credit equal to tolls paid on certain toll roads, bridges, or tunnels funded with public money through the Alabama Toll Road, Bridge, and Tunnel Authority.

What This Bill Does

It establishes an income tax credit that equals the total tolls paid by an eligible taxpayer in a tax year for tolls on Authority projects completed after the act’s effective date. The credit is claimed in the year the tolls are recognized and is non-transferable; if the credit exceeds the tax owed, a refund may be issued. For pass-through entities (partnerships, LLCs, S-Corps, trusts, or estates), the credit is claimed at the entity level and does not pass through to owners. The credits are funded through a dedicated Toll Authority Income Tax Credit Account in the Education Trust Fund, with funds transferred from sales tax revenues and replenished by Gulf of Mexico Energy Security Act (GOMESA) revenues or other dedicated sources. The Department of Revenue will prescribe forms and rules to implement the credit, and the act becomes effective immediately after passage.

Who It Affects

• Taxpayers subject to Alabama income tax who pay tolls to the Authority or an Authority concessionaire for toll road, bridge, or tunnel use
• Pass-through entities (partnerships, LLCs, S-Corporations, trusts, estates) that pay tolls and claim the credit at the entity level

Key Provisions

• Creates an Alabama income tax credit equal to the total tolls paid in a tax year for toll road or bridge fees on Authority projects completed after the act’s effective date
• Credit is claimed in the tax year tolls are recognized; non-transferable; if credits exceed tax owed, a refund may be provided
• Credit for partnerships, LLCs, S-Corps, trusts, or estates is claimed at the entity level and does not pass through to individual owners
• Establishes the Toll Authority Income Tax Credit Account within the Education Trust Fund; funds are transferred from sales tax revenues to cover the credits, with replenishment from GOMESA revenues or other dedicated revenue
• Department of Revenue will prescribe forms and rules to administer the credit; act becomes effective immediately upon passage

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation