HB 86 Summary

• Excludes from Alabama individual income taxation any federal tax credits or advance refunds received under the CARES Act (I.R.C. § 6428) or any subsequent federal coronavirus relief act.

• Exempts cancellation of indebtedness income from loans forgiven under the Paycheck Protection Program from Alabama income taxes and financial institution excise taxes, allowing related business expenses (payroll, utilities, mortgage interest, rent) to remain deductible.

• Excludes from Alabama income tax calculations for taxable year 2020 any tax credits or advance refunds received under federal coronavirus relief acts in determining federal income tax deductions.

• Exempts Alabama taxpayers from recognizing as income any amounts received from state Coronavirus Relief Funds provided under the CARES Act or subsequent federal coronavirus relief legislation.

• Makes employer-paid qualified education loan principal or interest payments excluded from federal income under CARES Act Section 2206(a) also exempt from Alabama employee income taxes.