The Alabama Senate on Thursday passed legislation that would prevent levying an additional $87.7 million in state income taxes on Alabamians for benefitting from expanded tax credits included in federal COVID relief.
State law doesn’t exclude COVID-related federal tax benefits from income that the state can tax. SB152, sponsored by Senator Dan Roberts, R-Mountain Brook, would ensure Alabamians would not have to pay additional taxes on credits they received in 2021.
“This benefits Alabamians across the board,” Roberts said on the Senate floor Thursday.
The $87.7 million belongs to the people of Alabama, and not the state government, Roberts said in a statement Thursday.
“This was truly a bipartisan effort, and I want to sincerely thank my colleagues on both sides of the aisle for their diligent work, fighting to ensure these families will not be imposed by this nonsensical tax,”
State Rep. Jim Carns, R-Vestavia Hills, is sponsoring the House’s version of the tax credit bill.