December 11, 2020Share:
Today, Governor Kay Ivey signed a supplemental emergency proclamation to address tax and economic development issues that were delayed in the Alabama Legislature’s 2020 Regular Session due to the COVID-19 pandemic.
This proclamation will allow Alabama citizens and businesses to avoid paying state taxes on certain benefits received under the federal CARES Act. It also would extend the expiration dates for the Alabama Jobs Act and Growing Alabama tax credits.
The proclamation directs the revenue commissioner to alter the tax-return forms and instructions. This will ensure that Alabama citizens and business will not have to pay taxes to the state government on the financial benefits they received from Congress through the CARES Act such as tax credits, advance refunds, and loan forgiveness.
This proclamation also changes the previous expiration dates for two tax-credit programs that assist Alabama’s economic-development efforts, the Alabama Jobs Act tax credits and the Growing Alabama tax credit. The Alabama Jobs Act credits are set to expire on December 31, 2020, while the Growing Alabama credit expired on September 30, 2020. Both tax-credit programs will now be extended until the Legislature has an opportunity to enact legislation addressing the programs.
If you have additional questions, please reach out to your Wilkins Miller contact or click here.