Ala. Bill Seeks To Exempt Federal Virus Aid From Income Tax

Federal tax credits or advance refunds authorized by a round of 2020 coronavirus relief legislation would not be subject to Alabama individual income tax under a bill introduced in the state House of Representatives.

H.B. 98, introduced Tuesday by Rep. Andy Whitt, R-Madison, would exclude tax credits and advance refunds under the Coronavirus Aid, Relief and Economic Security Act from individual income taxes in Alabama. It would also exempt forgiven Paycheck Protection Program loans from income and financial institution excise tax, according to the bill.

Republican Gov. Kay Ivey asked legislators to prioritize exempting funds received from the CARES Act in her State of the State address on Tuesday evening and said the state should work toward renewing a tax credit program to provide incentives for economic development. 

--Additional reporting by Abraham Gross. Editing by Vincent Sherry. 

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