AL HB159

Amends Section 40-16-1.3 to clarify that credit union net income means financial statement income (total revenue less total expenses) reported to the IRS and Alabama Credit Union Administration, less specified subtractions and as allocated and apportioned to Alabama.

Allows credit unions to subtract dividends received from other credit unions and credit union service organizations, and reasonable additions to reserves for losses, bad debts, and extraordinary expenses as defined by each credit union's Board-approved Capital Preservation Plan.

Provides that when reserves are withdrawn or reduced, the withdrawn amount must be included in taxable income for that tax year, except direct transfers between reserve accounts not included in net income calculations are excluded from taxable income.

Prohibits double deductions, deductions for excluded income items, and inclusion of items in multiple taxpayers' Alabama net income.

Bars any Financial Institution Excise Tax assessments or refunds for tax years ending on or before January 1, 2020 related to reserve deductions; voids any prior assessments which must be withdrawn with prejudice, and denies any previously filed refund petitions.