HB147 Summary

• For tax year 2021, federal income tax deductions for Alabama individual taxpayers shall exclude reductions from enhanced federal child tax credits, earned income tax credits, and child and dependent care tax credits under the American Rescue Plan Act, instead calculating as if using 2020 tax law rates.

• Financial institution excise taxpayers are allowed a one-month filing extension for tax years beginning January 1, 2021 or later, following the federal income tax return due date with applicable extensions, though tax payment remains due on the original deadline.

• Corporate income taxpayers are allowed a one-month filing extension for tax years beginning January 1, 2021 or later, following the federal income tax return due date with applicable extensions, though tax payment remains due on the original deadline.

• The Department of Revenue may grant discretionary one-month filing extensions for financial institution excise and corporate income taxpayers for tax years beginning January 1, 2020 through December 31, 2020, upon request and departmental approval.

• The Department of Revenue is authorized to adopt rules to implement this act, which becomes effective immediately upon passage and Governor approval.