SO6C88-1 05/20/2023 LSA-F-KF KF 2023-2209 Sub HB175 ENROLLEDWAYS OZQ3MM-3AND ByMEANS RepresentativeEDUCATION GarrettSUBSTITUTE RFD:TO HB175 OFFERED BY REPRESENTATIVE LOVVORN 2 4 SYNOPSIS:

WaysThis andbill Meansprovides Educationa Firstone-time Read:refundable income tax credit to each qualified taxpayer to partially offset the amount of sales taxes paid on groceries throughout the tax year.

21-Mar-23This 2023bill Regularprovides Sessionthat Pagethe 0Department HB175of EnrolledRevenue Enrolled,shall Anissue Act,the 3one-time Relatingrefundable tocredit which shall not be taxable for Alabama income taxes;tax purposes.

A BILL TO BE ENTITLED AN ACT 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 Page 1 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 "qualifiedqualified taxpayer"taxpayer 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, 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) $150$210 for single, head of family, and married filing separate.

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

(c) The refundable income tax credit shall be electronicallysent depositedby intocheck theto 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;2021.

exceptPage for2 any(d) qualifiedThe taxpayerAlabama of which the Department of Revenue doesshall notcommence haveissuing bank account information, in which case the refundable income tax creditcredits shallno belater mailedthan by90 checkdays toafter the qualifiedeffective taxpayer.date of this Act.

(d) The Alabama Department of Revenue shall commence issuing refundable income tax credits no sooner than November 30, 2023.

The 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 Enrolled 76 78 80 ________________________________________________ Speaker of the House of Representatives 84 86 ________________________________________________ President and Presiding Officer of the Senate 89 House of Representatives 92 I hereby certify that the within Act originated in and was passed by the House 25-MAY-23, as amended.

95 John Treadwell Clerk 98 Senate 01-Jun-23 Passed House 01-Jun-23 Concurred in Senate Amendment Page 4