SB379 Alabama 2021 Session

Summary

Primary Sponsor

Dan RobertsSenator

Republican

Co-Sponsors

Chris ElliottGarlan GudgerArthur Orr

Session

Regular Session 2021

Title

Taxation, exempt federal tax credits and restaurant revitalization grants received under American Rescue Plan Act from state taxation, to provide filing extension for certain taypayers, Revenue Dept. may adopt rules, Secs. 40-16-3.1, 40-18-39.1 added.

Summary

SB379 aligns Alabama tax rules with federal ARPA provisions by excluding restaurant grants from state income, restricting the state deduction impact of expanded 2021 credits, and extending filing deadlines for certain tax filers.

What This Bill Does

The bill makes Alabama conform to federal ARPA rules in several ways: it excludes restaurant revitalization grants from Alabama gross income and treats related expenses as deductible, matching federal treatment; it changes how the 2021 enhanced federal credits (child tax credit, earned income credit, and child/dependent care credits) affect the Alabama deduction by calculating the deduction as if the 2020 federal tax law were in effect; it provides a one-month filing extension for Alabama financial institution excise taxpayers and corporate income taxpayers for certain tax years, without extending the tax payment deadline, and allows the Department of Revenue to grant further extensions or adopt rules as needed.

Who It Affects

• Individual Alabama taxpayers who claim the 2021 enhanced federal credits (child tax credit, earned income credit, and child/dependent care credits) will see the state deduction calculated using pre-ARPA federal rules, potentially changing their Alabama tax liability.
• Corporate income taxpayers and financial institution excise taxpayers will receive a one-month filing extension for certain tax years, and businesses receiving ARPA restaurant revitalization grants will have those grants excluded from Alabama income and related expenses treated as deductible, aligning with federal rules.

Key Provisions

• Restaurant revitalization grants received under ARPA, Section 5003, are excluded from Alabama gross income to the same extent as federal law and related expenses paid with those grants remain deductible under Alabama law.
• For the 2021 tax year, the federal income tax deduction allowed for Alabama individual taxpayers shall be calculated without the ARPA reductions, instead using the federal tax amounts that would have been paid under the IRC in effect on December 31, 2020.
• For tax years beginning on or after January 1, 2021, financial institution excise taxpayers and corporate income taxpayers may have a one-month extension to file their Alabama returns after the due date of the corresponding federal return (including extensions); extensions do not extend the tax payment due date. An additional one-month extension may be allowed for years beginning 2020 but before 2021, upon request and approval.
• The Department of Revenue may adopt rules to implement the act.
• The act becomes effective immediately upon passage and approval.

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