By MARY SELL, Alabama Daily News
The Alabama Legislature gave final passage Thursday to a priority business bill.
House Bill 82 and Senate Bill 189, the Small Business Relief and Revitalization Act of 2022:
- Ensures that any amount of debt cancelation from loan forgiveness for disadvantaged farmers and ranchers in the American Rescue Plan Act is not treated as income under Alabama law. It will not be considered in determining deductibility of otherwise deductible expenses and will be excluded from calculations in determining federal income tax deduction.
- Allows a one-month extension of the due date of tax returns for Alabama financial institution excise taxpayers and corporate income tax taxpayers.
- Increases the estimated threshold calculation from $2,500 to $5,000, allowing sales tax licensees the option of a payment of certified funds in lieu of securing a surety bond, and exempting up to $40,000 in businesses personal property from ad valorem taxation by the state.
“Small businesses are vital to the viability and sustainability of Alabama’s economy,” Senate sponsor Garlan Gudger, R-Cullman said in a written statement. “These businesses are the foundation of our communities and faced extreme obstacles and challenges as a result of the pandemic. Small businesses took a major hit over the last two years, and the pandemic substantially hindered growth and job creation for these enterprises. We have made a great effort in the legislature throughout that time to provide them with the much-needed relief they deserve.”
Rep. Danny Garrett, R-Trussville, sponsored the bill in the House.
The legislation now goes to the governor.