Bradley Partner Bruce Ely Quoted in Alabama Daily News on Legislation to Untax Rescue Plan Relief
Alabama Daily News
Bradley attorney Bruce Ely was quoted in Alabama Daily News on the Alabama legislation needed to ensure families and restaurants aren't penalized on their state income taxes for credits and grants they receive under the federal American Rescue Plan Act. Lawmakers are urging the passage of Senate Bill 379 to ensure the family tax credit and restaurant grants don’t raise the state income tax liability for Alabamians. However, with this year’s regular legislative session coming to a close, the proposed bill isn’t likely to pass and will probably have to wait until later in the year. This means Alabamians could be taxed a combined $87 million in state income taxes.
A provision in the bill would allow corporations and banks an extra 30 days to file their Alabama tax return, after the due date of their federal return, said Ely.
“That helps both the companies and their CPA firms, especially those companies doing business in multiple states and with the different ways each state has responded to all these federal stimulus bills,” Ely explained.
Ely argued the bill should have been passed as soon as possible.
“Millions of Alabamians will claim one or more of the three federal tax credits listed in SB 379, and because of that, their Alabama income tax will increase as a result of a reduced federal tax deduction,” Ely said. “And these are the folks who need financial assistance the most. This will be an unpleasant surprise.
“I commend Senators Roberts and Orr for their leadership on these exemption conformity bills and hope the House and Senate leadership will give the successor to SB 379 a high priority in the special session this Fall. It should be made retroactive to January 1, 2021,” Ely said.
The original article, "Legislation to Untax Rescue Plan Relief may Have to Wait," appeared in Alabama Daily News on May 10, 2021.