SB 86 — 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.

SB86 ENGROSSEDENROLLED P1PUEE-2P1PUEE-3 By Senator Orr RFD:

FinanceConference andCommittee Taxationon EducationSB86 First Read:

21-Mar-23 2023 Regular Session Page 0 SB86 EngrossedEnrolled 2Enrolled, 4An AAct, BILL3 TO BE ENTITLED AN ACT 9 Relating to income taxes;

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 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, Page 1 SB86 Engrossed including any extensions which have been granted.

Page 1 SB86 Enrolled (2) An estate or trust.

(1) $105$150 for single, head of family, and married filing separate.

(2) $210$300 for married filing joint.

(c) The refundable income tax credit shall be sentelectronically bydeposited checkinto tothe bank account of the qualified taxpayer based on the appropriate information as indicated on the return for the taxable year that began January 1, 2021.2021;

(d)except Thefor Alabamaany qualified taxpayer of which the Department of Revenue shalldoes commencenot issuinghave bank account information, in which case the refundable income tax creditscredit noshall laterbe thanmailed 90by dayscheck afterto the effectivequalified datetaxpayer. of this Act.

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

Page 2 SB86 Enrolled (f) In no event shall the refundable income tax credit Page 2 SB86 Engrossed provided accrue interest for the benefit of the qualified taxpayer or be paid or credited to the qualified taxpayer with interest.

Page 3 SB86 EngrossedEnrolled Senate70 Read________________________________________________ forPresident and Presiding Officer of the firstSenate time74 and76 referred________________________________________________ ................21-Mar-23Speaker toof the SenateHouse committeeof onRepresentatives Finance79 andSB86 TaxationSenate Education04-May-23 ReadI forhereby certify that the secondwithin timeAct andoriginated placedin ................03-May-23and onpassed the calendar:Senate, as amended.

085 amendmentsSenate Read25-May-23 forI thehereby thirdcertify timethat andthe passedwithin ................04-May-23Act asoriginated amendedin Yeasand 30passed Naysthe 3Senate, Abstainsas 0amended Patrickby Harris,Conference Secretary.Committee Report.

Page89 4Patrick Harris, Secretary.

92 94 House of Representatives Amended and passed:

25-May-23 98 House of Representatives Passed 25-May-23, as amended by Conference Committee Report.

By:

Senator Orr Page 4