HB 175 — Relating to income taxes; to provide a one-time refundable income tax credit to qualified taxpayers to partially offset the amount of sales taxes paid on groceries throughout the tax year; to create the Refundable Tax Credit Fund in the State Treasury; to provide that refundable credits would not be taxable for Alabama income tax purposes; and to provide an effective date.

HB175 ENGROSSEDENROLLED OZQ3MM-2OZQ3MM-3 By Representative Garrett RFD:

21-Mar-23 2023 Regular Session Page 0 HB175 EngrossedEnrolled 2Enrolled, 4An AAct, BILL3 TO BE ENTITLED AN ACT 9 Relating to income taxes;

In addition to any other transfers that may be provided by law, the Statestate Comptroller shall direct from the Education Trust Fund to the Refundable Tax Credit Fund the amount needed to make the payments of the one-time refundable tax credit provided for in Section 2 of this act, as well as the amount necessary to offset the administrative cost for the implementation of this act to the Department of Revenue.

The fund may accrue interest that shall be used to offset the administrative costs associated with the implementation of this act.

(a) As used in this section, the term qualified"qualified taxpayertaxpayer" means an individual taxpayer who filed an Alabama individual income tax return pursuant to the tax levied in Section 40-18-5, Code of Alabama 1975, on or before October 17, 2022, for the taxable year that began on January 1, 2021, Page 1 HB175 Engrossed including any extensions which have been granted.

Page 1 HB175 Enrolled (1) A nonresident.

(b) Each qualified taxpayer is entitled to a one-time refundable income tax credit to partially offset the amount of sales tax paid on groceries in the taxable year in an amount based on the qualified taxpayer’s filing status for the taxable year that began on January 1, 2021, equal to:

(1) $210$150 for single, head of family, and married filing separate.

(2) $420$300 for married filing joint.

(c) The refundable income tax credit shall be electronically deposited into the bank account of the qualified taxpayer based on the appropriate information as indicated on the return for the taxable year that began on January 1, 2021;

except for any qualified taxpayer thatof which the Department of Revenue does not have bank account information, in which case the refundable income tax credit shall be mailed by check to the qualified taxpayer.

The Page 2 HB175 Engrossed refundable income tax credit provided under this section shall not be subject to offset or debt collection against any Page 2 HB175 Enrolled liability.

In the event this act and Senate Bill 86 are both enacted during the 2023 Regular Session, the refundable income tax credit provided by this act shall prevail and the refundable income tax credit in Senate Bill 86 shall be inoperable.

Section 5.

Page 3 HB175 EngrossedEnrolled 76 78 80 ________________________________________________ Speaker of the House of Representatives Read84 for86 the________________________________________________ firstPresident time and referredPresiding ................21-Mar-23Officer toof the Senate 89 House of Representatives committee92 onI Wayshereby andcertify Meansthat Educationthe Readwithin forAct theoriginated secondin time and placedwas ................24-May-23passed onby the calendar:House 25-MAY-23, as amended.

amendments95 ReadJohn forTreadwell theClerk third98 timeSenate and01-Jun-23 passedPassed ................25-May-23House as01-Jun-23 amendedConcurred Yeasin 101Senate NaysAmendment 0 Abstains 0 John Treadwell Clerk Page 4