HB152 Alabama 2021 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Session

Regular Session 2021

Title

Taxation, CARES Act, exempts Alabama income tax relating to the coronavirus pandemic

Summary

HB152 would exclude CARES Act-related credits, refunds, loan forgiveness, and relief funds from Alabama taxes for 2020 and 2021, aligning Alabama tax treatment with federal rules.

What This Bill Does

If enacted, the bill would exclude CARES Act federal tax credits or advance refunds from Alabama individual income tax and from federal deduction calculations; it would exempt PPP loan forgiveness from Alabama income tax and financial institution excise tax, and allow related deductions to follow federal rules; it would exempt state Coronavirus Relief Funds from being taxed as income; and it would apply these changes to the 2020 and 2021 tax years with immediate effect.

Who It Affects

• Individual taxpayers in Alabama who received CARES Act credits/refunds or state CARES funds, and employees receiving employer-provided student loan benefits, would see these amounts excluded from taxable income or deductions.
• Businesses, lenders, and employers in Alabama with PPP loan forgiveness or related relief, including exemptions from financial institution excise tax and treatment of expenses paid with exempt loan proceeds, would have these amounts treated similarly to federal rules.

Key Provisions

• Section 1(a): Exclude CARES Act federal tax credits or advance refunds (I.R.C. § 6428) and any similar future relief from Alabama individual income tax.
• Section 1(b): Exclude CARES Act credits/refunds from calculations determining federal income tax deductions under Section 40-18-15.
• Section 1(c): Exclude employer-paid principal or interest on qualified education loans from employee gross income to the same extent as applicable under federal CARES Act provisions.
• Section 2(1): Exempt cancellation of indebtedness income from PPP loan forgiveness from the financial institution excise tax and from Alabama income taxes to the same extent as federal tax treatment.
• Section 2(2): Exclude PPP loan forgiveness amounts from federal income tax deduction calculations under federal law.
• Section 2(3): Allow deductibility of expenses (e.g., payroll, utilities, mortgage interest, rent) paid with exempt PPP proceeds to Alabama taxable income to the same extent as federal deductibility.
• Section 3: Exclude from Alabama income tax any state Coronavirus Relief Fund amounts provided to the state under CARES Act or similar acts.
• Section 4: Provisions apply only to taxable years 2020 and 2021.
• Section 5: Act becomes effective immediately after passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation