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AL HB35

Bill

Status

Introduced

2/2/2021

Primary Sponsor

Andy Whitt

Click for details

Origin

House of Representatives

Regular Session 2021

AI Summary

HB35 Summary

  • Excludes federal tax credits and advance refunds received under the CARES Act (I.R.C. § 6428) from Alabama individual income taxation.

  • For taxable year 2020, excludes these CARES Act tax credits and advance refunds from calculations determining federal income tax deductions under Alabama law.

  • Exempts cancellation of indebtedness income from Paycheck Protection Program loan forgiveness (CARES Act Section 1106) from Alabama financial institution excise tax and income taxes to the same extent exempt from federal income tax.

  • Prevents forgiven PPP loan amounts from reducing the deductibility of business expenses (payroll, utilities, mortgage interest, rent) paid with those funds, matching federal tax treatment.

  • Becomes effective immediately upon passage and gubernatorial approval.

Legislative Description

Taxation, income taxes, federal Coronavirus Aid, Relief, and Economic Security Act, excluded from Alabama individual income taxation

Taxation

Last Action

Read for the first time and referred to the House of Representatives committee on Ways and Means Education

2/2/2021

Committee Referrals

Ways and Means Education2/2/2021

Full Bill Text

No bill text available