SB75 Summary

• Excludes federal tax credits and advance refunds provided under the CARES Act (I.R.C. § 6428) or any subsequent federal pandemic-related act from Alabama individual income taxation for taxable years 2020 and 2021.

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

• Exempts employer-paid principal and interest on qualified education loans excluded from federal gross income under CARES Act Section 2206(a) from Alabama income taxes to the same extent excluded from federal taxation.

• Exempts state Coronavirus Relief Fund amounts received by Alabama taxpayers from recognition as income for Alabama income and financial institution excise tax purposes.

• Allows deductibility of expenses (payroll, utilities, mortgage interest, rent) paid with exempt loan proceeds in calculating Alabama taxable income to the same extent deductible under federal tax code.