MONTGOMERY, Ala. – The Alabama State Senate on Wednesday passed a top-priority bill, SB 98, that provides income tax exemption for Alabamians who receive federal COVID-19 aid and made various changes to corporate tax law.
This bill is sponsored by Senator Dan Roberts (R-Mountain Brook).
“We are not going to tax any of the stimulus funds that have been received for companies, individuals or anyone,” said Roberts.
Senator Roberts said the bill would also help Alabama-based companies compete globally.
“Our Alabama businesses were competitive,” said Roberts. “This legislation enables Alabama companies to compete at the same level. We try to help our companies be as competitive as possible and give them every advantage we can to be successful. “
Senate Pro Tem Greg Reed (R-Jasper) said, “COVID-19 aid funds should help those fighting the storm of the pandemic and it is important that these funds not be taxed by the state in order for so much aid to be delivered as possible make it into the pockets of the Alabamians. I thank Senator Roberts for leading this important law and congratulate him on its passage in the Senate today. “
Majority Leader Clay Scofield said he was satisfied with the passing of SB 98.
“Our state and people had tremendous success when the coronavirus pandemic began, and these federal funds were sent down from Washington to provide much-needed aid to eligible Alabamians,” Scofield said. “These funds should help individuals and businesses stay afloat in difficult times, and Senator Roberts’ bill ensures that goal continues to be achieved.”
The Alabama House of Representatives passed the House version of Bill HB 170 last week. The bill is now being sent to Governor Kay Ivey’s desk for signature.