HB19 Alabama 2021 Session

Summary

Primary Sponsor

Arnold MooneyRepresentative

Republican

Session

Regular Session 2021

Title

Taxation, income taxes, federal Coronavirus Aid, Relief, and Economic Security Act, excluded from Alabama individual income taxation

Summary

HB19 would exclude CARES Act tax credits, advance refunds, and PPP loan forgiveness from Alabama personal income tax and related state taxes, with immediate effect after passage.

What This Bill Does

It excludes federal CARES Act tax credits or advance refunds (IRC 6428) from Alabama individual income tax, and for 2020 also from the calculation of the federal income tax deduction under Alabama law. It also excludes the forgiveness of PPP loans under CARES Act Section 1106 from Alabama income tax and from the Alabama financial institution excise tax, to the same extent as federal tax treatment, and it prevents these funds from reducing the deductibility of other expenses or affecting federal deduction calculations under Title 40. The act becomes effective immediately after the Governor signs it into law.

Who It Affects

• Alabama individual income taxpayers who receive CARES Act tax credits or advance refunds and related 2020 tax calculations.
• Small business borrowers with PPP loan forgiveness and Alabama financial institutions, who would receive tax exclusions and adjustments related to those forgiven loans.

Key Provisions

• Exclude CARES Act tax credits or advance refunds (IRC 6428) from Alabama individual income taxation; 2020 credits/refunds excluded from the federal income tax deduction calculation under Section 40-18-15.
• Exclude PPP loan forgiveness amounts under CARES Act Section 1106 from Alabama financial institution excise tax and from Alabama income tax, to the same extent as federal tax treatment; do not count these funds when determining the deductibility of related expenses and exclude from federal deduction calculations under Title 40.

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