Exclusion of Cares Act Relief Benefits, etc., From Alabama Individual Income Taxation and Deductions.

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Section 40-18-460

Exclusion of CARES Act relief benefits, etc., from Alabama individual income taxation and deductions.

(a) Any tax credits or advance refund amounts received as a result of the federal Coronavirus Aid, Relief, and Economic Security Act, as provided in 26 U.S.C. § 6428, or as a result of Section 272 of the COVID-related Tax Relief Act of 2020 (RELIEF Act), Pub. L. 116-260, as provided in 26 U.S.C. § 6428A, or as a result of other similar COVID-related relief measures for individuals enacted by the United States Congress, as applicable to the 2021 tax year, shall be excluded from Alabama individual income taxation.

(b) Any tax credits or advance refund amounts received as a result of the federal Coronavirus Aid, Relief, and Economic Security Act, as provided in 26 U.S.C. § 6428, or as a result of Section 272 of the RELIEF Act, Pub. L. 116-260, as provided in 26 U.S.C. § 6428A, or as a result of other similar COVID-related relief measures for individuals enacted by the United States Congress shall also be excluded from any and all calculations in determining a taxpayer's federal income tax deduction pursuant to Section 40-18-15.

(c) Principal or interest payments incurred by an employer on any qualified education loan that is excluded from an employee's federal gross income pursuant to 26 U.S.C. § 127(c)(1)(B), under the provisions of Section 2206(a) of the Coronavirus Aid, Relief, and Economic Security Act, as amended by Section 120 of the Taxpayer Certainty and Disaster Relief Tax Act of 2020, Pub. L. 116-260, shall be excluded from the gross income of the employee for income taxes imposed by this chapter to the same extent as the amount is excluded from the federal gross income.

(d) Any amount received from a Qualified Emergency Federal Aid Grant shall be excluded from the gross income of the grant recipient for income taxes imposed by this chapter to the same extent as the amount is excluded from the federal gross income under Section 277 of the RELIEF Act.

(e) Any Alabama taxpayer subject to the tax imposed by Chapter 16 or this chapter shall be exempt from recognizing as income any amount received from the state Coronavirus Relief Fund provided by the United States Congress to the State of Alabama from the Coronavirus Aid, Relief, and Economic Security Act.

(f) Any qualifying disaster relief payment received by an Alabama taxpayer which would be excluded from federal income taxation pursuant to 26 U.S.C. § 139 as a result of the Presidential Proclamation on Declaring a National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak shall be excluded from the gross income of the taxpayer for income taxes imposed by this chapter to the same extent as the amount is excluded from federal gross income.

(g) This section applies to tax years ending after March 27, 2020.

(Act 2021-1, §2.)


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