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AL SB152
Bill
AI Summary
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For the 2021 tax year, Alabama individual taxpayers' federal income tax deduction shall exclude reductions from enhanced federal child tax credit, earned income tax credit, and child and dependent care tax credits provided by the American Rescue Plan Act of 2021.
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Federal income tax deductions shall be calculated as if taxpayers paid federal income tax under the Internal Revenue Code provisions in effect on December 31, 2020, rather than accounting for the enhanced credits under the American Rescue Plan Act.
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This provision allows individuals to retain enhanced federal credits received rather than having a portion offset by increased Alabama state income tax liability.
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The Department of Revenue is authorized to adopt rules necessary to implement the act.
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The act becomes effective immediately upon passage and approval by the Governor.
Legislative Description
Taxation, income tax, exclusion of enhanced federal child tax credits from American Rescue Plan Act from calculation of federal income tax deduction for tax year 2021, extension of the due date for certain taxpayers, Secs. 40-16-3.1, 40-18-39.2 added.
Taxation
Last Action
Assigned Act No. 2022-75.
2/22/2022