HB152 Summary

• Excludes federal tax credits and advance refunds from the CARES Act (I.R.C. § 6428) and subsequent federal pandemic relief acts from Alabama individual income taxation for tax years 2020 and 2021.

• Exempts cancellation of indebtedness income from Paycheck Protection Program loan forgiveness under the CARES Act from Alabama individual income tax, financial institution excise tax, and federal income tax deduction calculations.

• Excludes employer-paid qualified education loan principal and interest payments from employee gross income for Alabama tax purposes to the same extent excluded federally under Section 2206(a) of the CARES Act.

• Exempts amounts received by Alabama taxpayers from state Coronavirus Relief Funds provided under the CARES Act or subsequent pandemic-related federal acts from being recognized as income for state taxation purposes.

• Allows deduction of expenses paid with exempt loan proceeds (payroll, utilities, mortgage interest, rent) in calculating Alabama taxable income to the same extent allowed for federal taxable income.