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AL SB98

AL SB98
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, Se


summary

Introduced
02/02/2021
In Committee
02/02/2021
Crossed Over
Passed
Dead
05/17/2021

Introduced Session

Potential new amendment
Regular Session 2021

Bill Summary

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.

AI Summary

This bill: - Excludes from Alabama individual income taxation any tax credits, advance refunds, qualified disaster relief payments, subsidies, grants, student loans, or loan forgiveness received as a result of federal COVID-19 relief legislation like the CARES Act. - Exempts from Alabama income and financial institution excise taxes any amounts received from the state Coronavirus Relief Fund or certain loan forgiveness, grants, and subsidies provided by federal COVID-19 relief laws. - Decouples Alabama from certain federal tax provisions related to global intangible low-taxed income (GILTI) and contributions to corporations. - Changes the way Alabama calculates the business interest expense deduction limitation, allowing more flexibility. - Allows certain pass-through entities in Alabama to elect to be taxed at the entity level rather than passing through to the owners. Overall, the bill aims to provide tax relief and adjustments related to the COVID-19 pandemic and federal response.

Committee Categories

Budget and Finance

Sponsors (12)

Last Action

Indefinitely Postponed (on 05/04/2021)

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