Bill > HB657

This bill establishes a one-time refundable income tax credit for qualified taxpayers in Alabama. A "qualified taxpayer" is an individual who filed an Alabama income tax return for both the 2024 and 2025 tax years, and is not a nonresident, an estate or trust, or claimed as a dependent by someone else for federal or Alabama income tax purposes in 2024, unless they had earned income in 2024. The credit amount will be automatically applied by the department once a qualified taxpayer files their 2025 tax return and will be the lesser of their 2024 tax liability or a set amount based on their 2025 filing status: $250 for single filers or married filing separately, $375 for heads of household, and $500 for married couples filing jointly. For those whose tax was prorated, the credit will also be prorated. The credit cannot exceed the taxpayer's 2025 tax liability, will not be considered taxable income, and will be issued via electronic transfer or check after being applied to any outstanding tax debts. Interest will not accrue on these credits, and they are subject to debt collection provisions.

Budget and Finance

https://alison.legislature.state.al.us/bill-search