SB189 Alabama 2022 Session

Under existing law, amounts received as loan forgiveness or payment under Section 1005 of the federal American Rescue Plan Act of 2021 for qualifying disadvantaged farmers and ranchers may be considered taxable

This bill would provide that for tax years ending after the enactment of the federal American Rescue Plan Act of 2021, any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1005 of the American Rescue Plan Act shall be exempt from income taxes imposed by Chapter 18 of Title 40, Code of Alabama 1975, not considered in determining the deductibility of otherwise deductible expenses, and excluded from any and all calculations in determining a taxpayer’s federal income tax deduction pursuant to Chapter 18 of Title 40, Code of Alabama 1975

Under existing law, the due date for a corporate income tax return and financial institution excise tax return is the same as the corresponding federal income tax return

This bill would provide for a one-month extension of the due date of tax returns for Alabama financial institution excise taxpayers and corporate income taxpayers in the tax years beginning on or after January 1, 2021, without incurring a late filing penalty. The filing extension would not extend the due date of the tax liability by these taxpayers

This bill would also authorize the Department of Revenue, at its discretion, to extend the due date of the tax returns for Alabama financial institution excise taxpayers and corporate income taxpayers by one month in tax years beginning on or after January 1, 2020, but not after January 1, 2021

Under existing law, ad valorem tax is levied on tangible personal property owned by businesses in Alabama. Additionally, certain property and persons are exempt from ad valorem taxation

This bill would provide an exemption of up to $40,000 of the market value of business tangible personal property from ad valorem tax levied by the state. The bill also provides that any county or municipality may adopt, by ordinance or resolution, the same exemption for local ad valorem taxes levied on business tangible personal property

Under existing law, a one-time surety bond is required for certain sales tax licensees

Under existing law, any sales tax licensee whose average monthly state sales tax liability was $2,500 or greater during the preceding calendar year is required to make estimated payments

This bill would allow for a deposit of certified funds in lieu of the purchase of a surety bond. This bill would also increase the average monthly state sales tax liability threshold calculation to $5,000 or greater during the preceding calendar year for required estimated payments

Relating to the Small Business Relief and Revitalization Act of 2022; to provide that for tax years ending after the enactment of the federal American Rescue Plan Act of 2021, any amount of cancellation of indebtness income resulting from a loan forgiven under Section 1005 of the American Rescue Plan Act shall be exempt from income taxes imposed by Chapter 18 of Title 40, Code of Alabama 1975; to provide for an extension of the due date for financial institution excise tax and corporate income tax taxpayers; to provide an exemption of up to $40,000 of the market value of business tangible personal property from state ad valorem tax; to provide a county and municipal election of the exemption; to provide for a deposit of certified funds in lieu of a one-time surety bond; to provide for an increase in the amount of the average monthly sales tax liability for required estimated payments.