SB274 Alabama 2021 Session

Under the capital credit program, an annual credit of a percentage of the capital costs of a qualifying project can be applied to an Alabama income tax or financial institution excise tax liability of an investing company. A qualifying project must meet specific employment and wage requirements after the project is placed into service for the capital credit to be available.

This bill establishes the COVID-19 Recovery Capital Credit Protection Act of 2021. The bill provides an extension to the employment and wage requirements for a qualifying project placed into service during 2019, 2020, and 2021.

The bill provides that the failure to meet the annual employment and wage requirements during the 2020 and 2021 tax years will not be considered in determining whether a project will be disqualified from the program. The bill provides that forfeiture penalties will not apply for qualifying projects failing to meet those requirements.

Under current law, an amount up to twenty-five thousand dollars received as severance, unemployment compensation or termination pay, or as income from a supplemental income plan, by an employee who is terminated, laid-off, fired, or displaced from his or her employment, is exempt from income tax.

This bill provides an increase in the exemption amount received as severance, unemployment compensation or termination pay, or as income from a supplemental income plan for tax years beginning after December 31, 2019.

To establish the COVID-19 Recovery Capital Credit Protection Act of 2021; to amend Section 40-18-19.1, Code of Alabama 1975; to increase the amount of various types of compensation that may be exempted; and to provide an extension to the employment and wage requirements of the capital credit program and associated penalties.