1 HB231
2 216567-3
3 By Representatives Carns, Mooney, Wingo, Wheeler, Sorrell,
4 Stringer, Hurst, Pettus, McCutcheon, Simpson, Kitchens, Hall,
5 Brown (K), Lawrence, Bracy, Jackson, Grimsley, Bedsole,
6 Holmes, Fincher, Allen, Sorrells, Marques, Jones (S), Greer,
7 Crawford, Ledbetter, Meadows, Shaver, Ellis and Reynolds
8 RFD: Ways and Means Education
9 First Read: 02-FEB-22
Page 0 HB231
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2 ENROLLED, An Act,
3 Relating to taxation; to provide that the deduction
4 allowed to individual taxpayers for federal income tax paid or
5 accrued within the tax year ending December 31, 2021 will be
6 determined without considering the reduction in federal tax
7 attributable to any additional federal child tax credit,
8 federal earned income tax credit, or federal child and
9 dependent care tax credit received pursuant to the American
10 Rescue Plan Act of 2021, in order to allow individuals to
11 receive the amount of the enhanced federal credits rather than
12 pay state income tax on a portion of the amounts received; to
13 authorize the Department of Revenue to adopt rules.
14 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
15 Section 1. For the tax year ending on December 31,
16 2021, for purposes of determining an individual taxpayer's
17 federal income tax deduction pursuant to Chapter 18 of Title
18 40, Code of Alabama 1975, the federal income tax deduction
19 shall be calculated without consideration of the reductions in
20 federal tax provided in Sections 9611, 9612, 9621, 9622, 9623,
21 9624, 9625, 9626, and 9631 of the American Rescue Plan Act of
22 2021, and instead, for any federal income tax reductions
23 attributable to the federal child tax credit, the earned
24 income tax credit, and the federal child and dependent care
25 tax credits, the federal income tax deduction shall be
Page 1 HB231
1 calculated as if the individual paid the federal income tax
2 that would otherwise have been paid under the provisions of
3 the Internal Revenue Code in effect on December 31, 2020.
4 Section 2. Sections 40-16-3.1 and 40-18-39.2 are
5 added to the Code of Alabama 1975, to read as follows:
6 §40-16-3.1.
7 (a)(1) For tax years beginning on or after January
8 1, 2021, a financial institution excise taxpayer shall be
9 allowed one month following the due date of the corresponding
10 federal income tax return, including applicable extensions, to
11 file the Alabama financial institution excise tax return as
12 required by Section 40-16-3.
13 (2) For tax years beginning on or after January 1,
14 2020, but prior to January 1, 2021, the department may allow a
15 financial institution excise taxpayer one additional month
16 following the due date of the corresponding federal income tax
17 return, including applicable extensions, to file the Alabama
18 financial institution excise tax return, upon request by the
19 taxpayer and approval by the department.
20 (b) The extension provided in this section shall not
21 allow a taxpayer to defer payment of a financial institution
22 excise tax liability beyond the original due date provided in
23 Section 40-16-3.
24 §40-18-39.2.
Page 2 HB231
1 (a)(1) For tax years beginning on or after January
2 1, 2021, a corporate income taxpayer shall be allowed one
3 month following the due date of the corresponding federal
4 income tax return, including applicable extensions, to file
5 the Alabama corporate income tax return as required by Section
6 40-18-39.
7 (2) For tax years beginning on or after January 1,
8 2020, but prior to January 1, 2021, the department may allow a
9 corporate income taxpayer one additional month following the
10 due date of the corresponding federal income tax return,
11 including applicable extensions, to file the Alabama corporate
12 income tax return, upon request by the taxpayer and approval
13 by the department.
14 (b) The extension provided in subsection (a) shall
15 not allow a taxpayer to defer payment of a corporate income
16 tax liability beyond the original due date provided in Section
17 40-18-39.
18 Section 3. The Department of Revenue may adopt rules
19 to implement this act.
20 Section 4. This act shall become effective
21 immediately following its passage and approval by the
22 Governor, or its otherwise becoming law.
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4
Speaker of the House of Representatives
5
6 President and Presiding Officer of the Senate
House of Representatives7
I hereby certify that the within Act originated in8
9 and was passed by the House 15-FEB-22, as amended.
10
11 Jeff Woodard
12 Clerk
13
14
15
Senate16 17-FEB-22 Passed
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