SB379 Summary

• For tax year ending December 31, 2021, individual taxpayers' federal income tax deduction shall be calculated without considering reductions from enhanced federal child tax credits, earned income tax credits, and child and dependent care tax credits under the American Rescue Plan Act of 2021, using instead the tax rates in effect on December 31, 2020.

• Restaurant revitalization grants under Section 5003 of the American Rescue Plan Act are excluded from Alabama income taxation to the same extent as federal law, and expenses paid with these grants remain deductible in the same manner as federal law allows.

• Financial institution excise taxpayers and corporate income taxpayers are allowed one additional month beyond the federal income tax return due date to file Alabama returns for tax years beginning on or after January 1, 2021, without incurring late filing penalties, though tax payment remains due by the original date.

• For tax years beginning on or after January 1, 2020, but before January 1, 2021, the Department of Revenue may discretionarily grant a one-month filing extension to financial institution excise taxpayers and corporate income taxpayers upon request and approval.

• The Department of Revenue is authorized to adopt rules for implementation, and the act becomes effective immediately upon passage and approval.