SB85 Alabama 2022 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Co-Sponsors

David SessionsJack W. Williams

Session

Regular Session 2022

Title

Toll road and bridge fees, income tax credit for state taxpayers for payments to Ala. Toll Road, Bridge, and Tunnel Authority, Revenue Dept. authorized to adopt rules, funds transferred from sales tax revenue to cover

Summary

SB85 would create an income tax credit equal to toll fees paid to the Alabama Toll Road, Bridge, and Tunnel Authority or its concessionaires, funded from state education fund revenues and replenished from dedicated sources.

What This Bill Does

It establishes a dollar-for-dollar income tax credit for eligible taxpayers who pay tolls on authority projects built with public funds. The credit applies to tolls for projects completed after the act's effective date and can be claimed in the tax year tolls are recognized; if the credit exceeds tax liability, a refund of the difference is allowed. Credits for partnerships, LLCs, S-Corps, trusts, and estates are claimed at the entity level and do not pass through to owners. A new Toll Authority Income Tax Credit Account in the Education Trust Fund would be funded by transfers from sales tax revenues to support these credits, with replenishment from GOMESA revenues or other dedicated sources; the Department of Revenue would prescribe forms and adopt rules for implementation.

Who It Affects

• Taxpayers who pay toll road, bridge, or tunnel fees to the Authority or an authority concessionaire, who would be eligible to receive a credit equal to their toll fees in the applicable tax year.
• Entities such as partnerships, limited liability companies (LLCs), S-Corporations, trusts, or estates that pay toll fees and claim the credit at the entity level rather than passing it through to owners.

Key Provisions

• Implements an Alabama income tax credit equal to the total toll road or bridge fees paid to the Authority or its concessionaire for authority projects completed after the act's effective date.
• The credit can be claimed in the tax year when the tolls are recognized; if taxes owed are less than the credit, a refund may be issued for the difference.
• The credit is non-transferable and must be claimed by the eligible taxpayer each year; for partnerships, LLCs, S-Corps, trusts, and estates, credits are claimed at the entity level and do not pass through to owners.
• Creates the Toll Authority Income Tax Credit Account in the Education Trust Fund; the Revenue Commissioner certifies the credit amounts and the Comptroller transfers sufficient funds from sales tax revenues to cover the credits.
• The Legislature must provide replenishment of the Education Trust Fund for these credits from GOMESA revenues or other dedicated sources.
• The Department of Revenue will prescribe the forms and adopt rules to implement the tax credit.

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