|Committee: Finance and Taxation Education||Sponsor: Garrett|
|Analyst: Kirk Fulford||Date: 02/08/2021|
House Bill 170 as passed the House of Representatives would enact the Alabama Taxpayer Stimulus Freedom Act of 2021 to exempt from state income and/or financial institution excise taxes the various stimulus payments, advance refunds, grants, and small business loans forgiven due to the coronavirus relief bills passed by Congress.
The bill would also enact the Alabama Business Tax Competitiveness Act to change how business income is apportioned to Alabama, clarify the deduction for business interest expenses, decouple from provisions of the Tax Cuts and Jobs Act, and allow pass-through entities to elect to be taxed at the entity level.
This bill will increase income tax receipts to the Education Trust Fund by an estimated $12.95 million for the fiscal year ending September 30, 2021, and by an estimated $12.75 million for each fiscal year thereafter.
|Arthur Orr, Chairperson|
Finance and Taxation Education