SB75 Alabama 2021 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

Regular Session 2021

Title

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

Summary

SB75 would exclude CARES Act-related tax credits, refunds, PPP loan forgiveness, and state relief funds from Alabama taxes for 2020 and 2021.

What This Bill Does

If passed, the bill would exclude federal CARES Act tax credits or advance refunds from Alabama individual income tax and from calculations used to determine federal deductions for Alabama taxes. It would also exempt forgiveness of PPP loans (and related debt forgiveness) from Alabama income tax and financial institution excise tax, while allowing deductions for expenses paid with those funds to follow federal rules. Additionally, amounts received from state Coronavirus Relief Funds would not be counted as income for Alabama tax purposes. The provisions apply to tax years 2020 and 2021 and take effect immediately upon passage.

Who It Affects

• Alabama individual taxpayers who received CARES Act tax credits or advance refunds or state Coronavirus Relief Funds, who would not have these amounts counted as income for Alabama tax purposes.
• Small businesses and financial institutions that benefited from PPP loan forgiveness or other CARES-related debt forgiveness, whose forgiveness amounts would be exempt from Alabama taxes and whose expenses paid with those funds would remain deductible for Alabama tax purposes.

Key Provisions

• Exclude federal CARES Act tax credits or advance refunds (and similar future acts) from Alabama individual income tax.
• Exclude CARES Act-related tax credits or advance refunds from calculations of Alabama-determined federal deductions (for Section 40-18-15).
• Exclude from Alabama gross income the forgiveness of debts from PPP loans (Section 1106 CARES Act), and exempt such amounts from financial institution excise tax; allow related expenses paid with exempt funds to be deductible for Alabama tax purposes.
• Exempt any amount received from state Coronavirus Relief Funds from Alabama income tax and financial institution excise tax.
• Exclude from income recognition any state CARES Act funds for taxpayers under Alabama Chapter 16 or 18 taxes.
• Apply to taxable years 2020 and 2021; take effect immediately after passage.

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