From the Tribune staff reports
MONTGOMERY — The House voted 94-0 for the bill that would exempt coronavirus stimulus payments, grants, and small loans forgiveness approved by Congress from state income taxes. The bill now moves to the Alabama Senate.
The bill, HB170, was sponsored by Republican Rep. Danny Garrett of Trussville.
“The bill excludes all COVID relief payments received by individuals, businesses and non-profit organizations from being subject to Alabama taxes,” Garrett said. “The bill also makes several other important changes that will reduce taxes on businesses operating in the state and make the state of Alabama more attractive for prospective businesses.”
The bill was one of several that Gov. Kay Ivey had asked to be prioritized in the current legislative session.
“These monies were meant to tide people over until the economy recovered. it was never meant as an opportunity to grow the state’s bank account,” Ivey said in her State of the State address Tuesday night.
Ivey in December signed a proclamation to allow Alabama citizens and businesses to avoid paying state taxes on certain benefits received under the federal CARES Act. The proclamation will be in effect if a person or business files their 2020 taxes before final passage of the legislation, Department of Revenue spokeswoman Amanda Collier wrote in an email.
The Associated Press contributed to this report.