HB257 Alabama 2021 Session

Summary

Primary Sponsor

Arnold Mooney Representative

Republican

Session

Regular Session 2021

Title

Income tax, exclusion for federal tax credits, advance refunds, qualified disaster relief payments, subsidies, grants, student loans, or loan forgiveness from federal CARES Act and subsequent federal COVID relief legislation, exemption from income and financial institution excise tax for amounts from the Coronavirus Relief Fund.

Description

Under the current provisions of the Code of Alabama 1975, amounts received as a result of federal tax credits or advance refunds and other economic relief payments provided under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and subsequent federal COVID relief legislation are not excluded from Alabama individual income taxation.

Under the current provisions of the Code of Alabama 1975, cancellation of indebtedness income resulting from the forgiveness of small business loans forgiven under Sections 1106 and 1109 of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and the federal Economic Aid for Hard-Hit Businesses, Nonprofits, and Venues Act is not excluded from Alabama individual income taxation and may not be excluded from Alabama corporate income taxation and financial institution excise taxation.

Under the current provisions of the Code of Alabama 1975, any amount received from the state Coronavirus Relief Fund is treated as taxable income for purposes of Alabama income and financial institution excise taxation.

This bill would provide for an exclusion from Alabama individual income taxation for any federal tax credits, advance refunds, Small Business Administration subsidy payments, Emergency EIDL grants, Targeted EIDL advances, student loan payments, or qualified disaster relief payments, resulting from the federal Coronavirus Aid, Relief, and Economic Security Act, Taxpayer Certainty and Disaster Relief Tax Act, or COVID-related Tax Relief Act.

This bill would provide an income and financial institution excise tax exemption for any amounts received from the Coronavirus Relief Fund.

This bill would provide for an exclusion from Alabama income taxation and financial institution excise taxation for small business loans forgiven under the Paycheck Protection Program established by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.

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Subjects

Taxation