Alabama 2022 Regular Session

Alabama House Bill HB231 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1 HB231
2		-	2 216567-3
	2	+	2 216567-2
3	3		3 By Representatives Carns, Mooney, Wingo, Wheeler, Sorrell,
4	4		4 Stringer, Hurst, Pettus, McCutcheon, Simpson, Kitchens, Hall,
5	5		5 Brown (K), Lawrence, Bracy, Jackson, Grimsley, Bedsole,
6	6		6 Holmes, Fincher, Allen, Sorrells, Marques, Jones (S), Greer,
7	7		7 Crawford, Ledbetter, Meadows, Shaver, Ellis and Reynolds
8	8		8 RFD: Ways and Means Education
9	9		9 First Read: 02-FEB-22
10	10
11		-	Page 0 HB231
12		-	1
13		-	2 ENROLLED, An Act,
14		-	3 Relating to taxation; to provide that the deduction
15		-	4 allowed to individual taxpayers for federal income tax paid or
16		-	5 accrued within the tax year ending December 31, 2021 will be
17		-	6 determined without considering the reduction in federal tax
18		-	7 attributable to any additional federal child tax credit,
19		-	8 federal earned income tax credit, or federal child and
20		-	9 dependent care tax credit received pursuant to the American
21		-	10 Rescue Plan Act of 2021, in order to allow individuals to
22		-	11 receive the amount of the enhanced federal credits rather than
23		-	12 pay state income tax on a portion of the amounts received; to
24		-	13 authorize the Department of Revenue to adopt rules.
25		-	14 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
26		-	15 Section 1. For the tax year ending on December 31,
27		-	16 2021, for purposes of determining an individual taxpayer's
28		-	17 federal income tax deduction pursuant to Chapter 18 of Title
29		-	18 40, Code of Alabama 1975, the federal income tax deduction
30		-	19 shall be calculated without consideration of the reductions in
31		-	20 federal tax provided in Sections 9611, 9612, 9621, 9622, 9623,
32		-	21 9624, 9625, 9626, and 9631 of the American Rescue Plan Act of
33		-	22 2021, and instead, for any federal income tax reductions
34		-	23 attributable to the federal child tax credit, the earned
35		-	24 income tax credit, and the federal child and dependent care
36		-	25 tax credits, the federal income tax deduction shall be
37		-	Page 1 HB231
38		-	1 calculated as if the individual paid the federal income tax
39		-	2 that would otherwise have been paid under the provisions of
40		-	3 the Internal Revenue Code in effect on December 31, 2020.
41		-	4 Section 2. Sections 40-16-3.1 and 40-18-39.2 are
42		-	5 added to the Code of Alabama 1975, to read as follows:
43		-	6 §40-16-3.1.
44		-	7 (a)(1) For tax years beginning on or after January
45		-	8 1, 2021, a financial institution excise taxpayer shall be
46		-	9 allowed one month following the due date of the corresponding
47		-	10 federal income tax return, including applicable extensions, to
48		-	11 file the Alabama financial institution excise tax return as
49		-	12 required by Section 40-16-3.
50		-	13 (2) For tax years beginning on or after January 1,
51		-	14 2020, but prior to January 1, 2021, the department may allow a
52		-	15 financial institution excise taxpayer one additional month
53		-	16 following the due date of the corresponding federal income tax
54		-	17 return, including applicable extensions, to file the Alabama
55		-	18 financial institution excise tax return, upon request by the
56		-	19 taxpayer and approval by the department.
57		-	20 (b) The extension provided in this section shall not
58		-	21 allow a taxpayer to defer payment of a financial institution
59		-	22 excise tax liability beyond the original due date provided in
60		-	23 Section 40-16-3.
61		-	24 §40-18-39.2.
62		-	Page 2 HB231
63		-	1 (a)(1) For tax years beginning on or after January
	11	+	Page 0 1 ENGROSSED
	12	+	2
	13	+	3
	14	+	4 A BILL
	15	+	5 TO BE ENTITLED
	16	+	6 AN ACT
	17	+	7
	18	+	8 Relating to taxation; to provide that the deduction
	19	+	9 allowed to individual taxpayers for federal income tax paid or
	20	+	10 accrued within the tax year ending December 31, 2021 will be
	21	+	11 determined without considering the reduction in federal tax
	22	+	12 attributable to any additional federal child tax credit,
	23	+	13 federal earned income tax credit, or federal child and
	24	+	14 dependent care tax credit received pursuant to the American
	25	+	15 Rescue Plan Act of 2021, in order to allow individuals to
	26	+	16 receive the amount of the enhanced federal credits rather than
	27	+	17 pay state income tax on a portion of the amounts received; to
	28	+	18 authorize the Department of Revenue to adopt rules.
	29	+	19 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	30	+	20 Section 1. For the tax year ending on December 31,
	31	+	21 2021, for purposes of determining an individual taxpayer's
	32	+	22 federal income tax deduction pursuant to Chapter 18 of Title
	33	+	23 40, Code of Alabama 1975, the federal income tax deduction
	34	+	24 shall be calculated without consideration of the reductions in
	35	+	25 federal tax provided in Sections 9611, 9612, 9621, 9622, 9623,
	36	+	26 9624, 9625, 9626, and 9631 of the American Rescue Plan Act of
	37	+	27 2021, and instead, for any federal income tax reductions
	38	+	Page 1 1 attributable to the federal child tax credit, the earned
	39	+	2 income tax credit, and the federal child and dependent care
	40	+	3 tax credits, the federal income tax deduction shall be
	41	+	4 calculated as if the individual paid the federal income tax
	42	+	5 that would otherwise have been paid under the provisions of
	43	+	6 the Internal Revenue Code in effect on December 31, 2020.
	44	+	7 Section 2. Sections 40-16-3.1 and 40-18-39.2 are
	45	+	8 added to the Code of Alabama 1975, to read as follows:
	46	+	9 §40-16-3.1.
	47	+	10 (a)(1) For tax years beginning on or after January
	48	+	11 1, 2021, a financial institution excise taxpayer shall be
	49	+	12 allowed one month following the due date of the corresponding
	50	+	13 federal income tax return, including applicable extensions, to
	51	+	14 file the Alabama financial institution excise tax return as
	52	+	15 required by Section 40-16-3.
	53	+	16 (2) For tax years beginning on or after January 1,
	54	+	17 2020, but prior to January 1, 2021, the department may allow a
	55	+	18 financial institution excise taxpayer one additional month
	56	+	19 following the due date of the corresponding federal income tax
	57	+	20 return, including applicable extensions, to file the Alabama
	58	+	21 financial institution excise tax return, upon request by the
	59	+	22 taxpayer and approval by the department.
	60	+	23 (b) The extension provided in this section shall not
	61	+	24 allow a taxpayer to defer payment of a financial institution
	62	+	25 excise tax liability beyond the original due date provided in
	63	+	26 Section 40-16-3.
	64	+	27 §40-18-39.2.
	65	+	Page 2 1 (a)(1) For tax years beginning on or after January
64	66		2 1, 2021, a corporate income taxpayer shall be allowed one
65	67		3 month following the due date of the corresponding federal
66	68		4 income tax return, including applicable extensions, to file
67	69		5 the Alabama corporate income tax return as required by Section
68	70		6 40-18-39.
69	71		7 (2) For tax years beginning on or after January 1,
70	72		8 2020, but prior to January 1, 2021, the department may allow a
71	73		9 corporate income taxpayer one additional month following the
72	74		10 due date of the corresponding federal income tax return,
73	75		11 including applicable extensions, to file the Alabama corporate
74	76		12 income tax return, upon request by the taxpayer and approval
75	77		13 by the department.
76	78		14 (b) The extension provided in subsection (a) shall
77	79		15 not allow a taxpayer to defer payment of a corporate income
78	80		16 tax liability beyond the original due date provided in Section
79	81		17 40-18-39.
80	82		18 Section 3. The Department of Revenue may adopt rules
81	83		19 to implement this act.
82	84		20 Section 4. This act shall become effective
83	85		21 immediately following its passage and approval by the
84	86		22 Governor, or its otherwise becoming law.
85		-	Page 3 HB231
86		-	1
	87	+	Page 3 1
87	88		2
88		-	3
89		-	4
90		-	Speaker of the House of Representatives
91		-
92		-	5
93		-	6 President and Presiding Officer of the Senate
94		-	House of Representatives7
95		-	I hereby certify that the within Act originated in8
96		-	9 and was passed by the House 15-FEB-22, as amended.
97		-	10
98		-	11 Jeff Woodard
99		-	12 Clerk
100		-	13
101		-	14
	89	+	House of Representatives3
	90	+	Read for the first time and re-4
	91	+	5 ferred to the House of Representa-
	92	+	6 tives committee on Ways and Means
	93	+	Education..........................7 .......02-FEB-22
	94	+	8
	95	+	Read for the second time and placed9
	96	+	on the calendar 1 amendment ......10 .......09-FEB-22
	97	+	11
	98	+	Read for the third time and passed12
	99	+	as amended.........................13 .......15-FEB-22
	100	+	Yeas 99, Nays 0, Abstains 014
102	101		15
103		-	Senate16 17-FEB-22 Passed
104		-	17
	102	+	16 Jeff Woodard
	103	+	17 Clerk
	104	+	18
105	105		Page 4