SB152 Alabama 2022 Session

Summary

Primary Sponsor

Dan RobertsSenator

Republican

Co-Sponsors

Gerald H. AllenWill BarfootWilliam “Bill” M. BeasleyTom ButlerClyde ChamblissDonnie ChesteenLinda Coleman-MadisonChris ElliottVivian Davis FiguresSam GivhanGarlan GudgerKirk HatcherJimmy HolleyAndrew JonesSteve LivingstonDel MarshTim MelsonArthur OrrRandy PriceGreg J. ReedClay ScofieldDavid SessionsShay ShelnuttBobby D. SingletonRodger SmithermanLarry StuttsJ.T. WaggonerApril WeaverTom WhatleyJack W. Williams

Session

Regular Session 2022

Title

Taxation, income tax, exclusion of enhanced federal child tax credits from American Rescue Plan Act from calculation of federal income tax deduction for tax year 2021, extension of the due date for certain taxpayers, Secs. 40-16-3.1, 40-18-39.2 added.

Summary

SB152 changes how Alabama calculates the 2021 federal income tax deduction, ignoring ARPA-enhanced credits and using pre-ARPA tax rules so taxpayers can receive those credits with less state tax.

What This Bill Does

For the 2021 tax year, Alabama will compute the federal income tax deduction without counting ARPA reductions from enhanced credits. Instead, the deduction is treated as if the taxpayer paid the federal tax that would have been due under the 2020 tax rules. The Department of Revenue can adopt rules to implement these changes. The change aims to let people receive the ARPA-enhanced credits rather than paying state income tax on part of those amounts.

Who It Affects

• Individual Alabama taxpayers who paid or accrued federal income tax in 2021; their state tax deduction will be calculated using pre-ARPA rules, which can alter their Alabama tax liability.
• Families and individuals eligible for ARPA-enhanced federal credits (such as the child tax credit, earned income tax credit, and child/dependent care credit); the bill is designed to let them keep the increased credits rather than having part of them offset by Alabama state tax.

Key Provisions

• For the 2021 tax year, the Alabama federal income tax deduction under Chapter 18 of Title 40 will be calculated without ARPA credit reductions and instead use the pre-ARPA federal tax amounts from 2020 for reductions due to CTC, EITC, and child/dependent care credits.
• The Alabama Department of Revenue may adopt rules to implement the act.
• The act becomes effective immediately after it passes and is approved by the Governor.

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