AL HB211

Extends the initial employment and wage requirement compliance period from one year to two years for approved project entities with projects placed into service in calendar years 2019, 2020, or 2021 that were directly affected by COVID-19.

Exempts approved project entities from disqualification for failing to meet annual employment and wage requirements for tax years beginning after December 31, 2019 but before January 1, 2022, if the COVID-19 pandemic was the primary cause.

Eliminates forfeiture penalties for qualifying projects failing to maintain employment and wage requirements for any tax year ending before January 1, 2022; beginning January 1, 2022, forfeiture penalties are capped at 100% of capital credits claimed in the prior year and reduced by 20% for each successive prior year over a five-year period.

Increases the severance, unemployment compensation, or termination pay exemption from $25,000 to $50,000 per tax year for employees terminated due to administrative downsizing, effective for tax years beginning after December 31, 2019.

Exempts from state, county, and municipal income tax all unemployment compensation received under the Coronavirus Aid, Relief, and Economic Securities Act and related extensions for taxable years 2020 and 2021.