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AL SB98
Bill
AI Summary
SB98 Summary
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Excludes from Alabama individual income taxation federal tax credits, advance refunds, SBA subsidy payments, EIDL grants, student loan payments, and qualified disaster relief payments from the CARES Act and subsequent COVID relief legislation.
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Exempts amounts received from the state Coronavirus Relief Fund from Alabama income and financial institution excise taxation.
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Changes corporate income tax apportionment from a three-factor formula with double-weighted sales factor to a single sales factor formula.
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Decouples Alabama from federal law 26 U.S.C. § 951A (Global Intangible Low-Taxed Income) and § 118(b)(2) (state contributions), with provisions allowing deductions for certain contributions and restructured business interest expense limitations.
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Permits S corporations and partnerships to elect entity-level taxation at the highest marginal rate, with owners relieved from individual income tax on their distributive shares, effective for tax years beginning January 1, 2021.
Legislative Description
Income tax, exclusion for federal tax credits, advance refunds, qualified disaster relief payments, subsidies, grants, student loans, or loan forgiveness from federal CARES Act and subsequent federal COVID relief legislation, exemption from income and financial institution excise tax for amounts from the Coronavirus Relief Fund, to decouple from 26 U.S.C, 951A and 118 (b)(2), to change business interest expense limitation, and to allow Electing Pass-Through Entity to be taxed at entity level, Sec. 40-27-1 am'd.
Taxation
Last Action
Indefinitely Postponed
5/4/2021