New relief for Alabama businesses and individuals
Today Alabama Governor Kay Ivey signed an emergency proclamation to provide additional relief to Alabama businesses and individuals that have received money as a result of the COVID-19 pandemic. Due to delays in the legislative process and the unprecedented challenges the pandemic has given rise to, Governor Ivey has announced short-term solutions that will assist taxpayers until the legislature is able to provide a more permanent solution. This was done with the intent to give clarity to taxpayers in terms of the upcoming tax filing season.
The bulk of this proclamation regards monies received by businesses and individuals as a direct result of COVID-19. This includes items such as Payroll Protection Program funds, advance tax refunds/credits, and other tax credits provided by both the CARES Act. Governor Ivey’s address states that the purpose of these programs was to provide relief during a time of economic uncertainty and were not designed to create an additional tax burden. Therefore, the Alabama revenue commissioner will be altering tax forms to ensure that these funds will not be included as income on the 2020 tax return.
Additionally, the proclamation extends two tax-credit programs which were set to expire at year-end. Both the Alabama Jobs Act tax credit and the Growing Alabama tax credit will now be extended until such time as the state legislature is able to enact new legislation. Both of these programs have led to increased investment in Alabama which have led to thousands of jobs and billions in investment in the state.
Additional information can be found in the press release which can be accessed at
https://governor.alabama.gov/newsroom/2020/12/governor-ivey-signs-emergency-proclamation-to-address-tax-and-economic-development-issues-delayed-due-to-covid-19-pandemic/