Alabama won’t tax stimulus payments
The Alabama State Senate passed one of the Legislature’s top priority bills, SB 98 during session on Wednesday. This bill, sponsored by Senator Dan Roberts (R-Mountain Brook), would provide an income tax exemption for Alabamians who received federal COVID-19 relief funds and make several modifications to the corporate tax code.
“We are not going to tax any of the stimulus monies that came in for businesses, for individuals, for anyone,” Roberts said. Sen. Roberts explained that the bill would also help Alabama-based businesses to compete on a global scale. “Our Alabama companies have been at a competitive disadvantage,” Roberts said. “This legislation allows Alabama companies to compete at the same level. We’re trying to help our businesses be as competitive as possible and give them every advantage we can to succeed.”
Senate Pro Tem Greg Reed (R-Jasper) said, “COVID-19 relief funds were intended to help those struggling to weather the storm of the pandemic, and it is important that these funds are not taxed by the state so that as much assistance as possible makes it into the pockets of Alabamians. I thank Senator Roberts for leading on this important bill and congratulate him on it passing today in the Senate.”
Majority Leader Clay Scofield expressed his satisfaction with the passage of SB 98. “Our state and our people took a significant hit when the Coronavirus pandemic started, and these federal relief funds were sent down from Washington to provide much-needed assistance to eligible Alabamians,” said Scofield. “These funds were intended to help individuals and businesses stay afloat during challenging times, and Senator Roberts’ bill ensures this goal remains accomplished.”
The Alabama House of Representatives last week passed the House version of the bill, HB 170. The bill will now be sent to Governor Kay Ivey’s desk for signature.