Alabama Adopts Federal Covid Tax Measures, Other Benefits

Alabama Gov. Kay Ivey approved a tax overhaul bill on Friday that syncs the state to most tax features of last year’s federal pandemic relief laws and offers businesses additional tax benefits to spur the economy.

The legislation (H.B. 170/S.B. 98) conforms Alabama to the CARES Act (Public Law 116-136) passed in March 2020 as well as the December relief law. Those measures were notable in clarifying that forgiven Paycheck Protection Program loans won’t be treated as taxable income and that loan recipients can deduct expenses paid with forgiven loans. Alabama joins dozens ...