1 SB152
2 216567-4
3 By Senators Roberts, Elliott, Sessions, Butler, Allen,
4 Shelnutt, Williams, Jones, Coleman-Madison, Singleton, Orr,
5 Hatcher, Chambliss, Price, Smitherman, Beasley, Weaver,
6 Figures, Reed, Waggoner, Stutts, Givhan, Chesteen, Whatley,
7 Scofield, Melson, Holley, Barfoot, Gudger, Marsh and
8 Livingston
9 RFD: Finance and Taxation Education
10 First Read: 01-FEB-22
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4 ENROLLED, An Act,
5 Relating to taxation; to provide that the deduction
6 allowed to individual taxpayers for federal income tax paid or
7 accrued within the tax year ending December 31, 2021 will be
8 determined without considering the reduction in federal tax
9 attributable to any additional federal child tax credit,
10 federal earned income tax credit, or federal child and
11 dependent care tax credit received pursuant to the American
12 Rescue Plan Act of 2021, in order to allow individuals to
13 receive the amount of the enhanced federal credits rather than
14 pay state income tax on a portion of the amounts received; to
15 authorize the Department of Revenue to adopt rules.
16 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
17 Section 1. For the tax year ending on December 31,
18 2021, for purposes of determining an individual taxpayer's
19 federal income tax deduction pursuant to Chapter 18 of Title
20 40, Code of Alabama 1975, the federal income tax deduction
21 shall be calculated without consideration of the reductions in
22 federal tax provided in Sections 9611, 9612, 9621, 9622, 9623,
23 9624, 9625, 9626, and 9631 of the American Rescue Plan Act of
24 2021, and instead, for any federal income tax reductions
25 attributable to the federal child tax credit, the earned
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1 income tax credit, and the federal child and dependent care
2 tax credits, the federal income tax deduction shall be
3 calculated as if the individual paid the federal income tax
4 that would otherwise have been paid under the provisions of
5 the Internal Revenue Code in effect on December 31, 2020.
6 Section 2. The Department of Revenue may adopt rules
7 to implement this act.
8 Section 3. This act shall become effective
9 immediately following its passage and approval by the
10 Governor, or its otherwise becoming law.
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President and Presiding Officer of the Senate
5
6 Speaker of the House of Representatives
SB1527
8 Senate 03-FEB-22
9 I hereby certify that the within Act originated in and passed
10 the Senate.
11
12 Patrick Harris,
13 Secretary.
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15
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17 House of Representatives
18 Amended and passed 17-FEB-22
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21 Senate concurred in House amendment 22-FEB-22
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24 By: Senator Roberts
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