Alabama § 40-18-461 Cancellation of Indebtedness Income Under Cares Act, Etc., Excluded from Alabama Individual Income Taxation and Deductions

Alabama Statutes

§ 40-18-461 — Cancellation of Indebtedness Income Under Cares Act, Etc., Excluded from Alabama Individual Income Taxation and Deductions

Alabama § 40-18-461

Title 40Revenue and Taxation

Ch. 18Income Taxes

Art. 22Alabama Taxpayer Stimulus Freedom Acts of 2021

This text of Alabama § 40-18-461 (Cancellation of Indebtedness Income Under Cares Act, Etc., Excluded from Alabama Individual Income Taxation and Deductions) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 40-18-461 (2026).

Text

(a)Any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1106 or Section 1109 of the federal Coronavirus Aid, Relief, and Economic Security Act as redesignated or amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, Pub. L. 116-260, or under Section 311 thereof:

(1)Shall be exempt from the financial institution excise tax imposed by Chapter 16 and the income taxes imposed by this chapter to the same extent as the amount is exempt from the federal income tax under Sections 276 or 278 of the RELIEF Act.

(2)Shall not be considered in determining the deductibility of otherwise deductible expenses, such as payroll, utilities, mortgage interest, and rent, allowed to be paid with the exempt funds, to the same extent as t

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(a) Any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1106 or Section 1109 of the federal Coronavirus Aid, Relief, and Economic Security Act as redesignated or amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, Pub. L. 116-260, or under Section 311 thereof:
(1) Shall be exempt from the financial institution excise tax imposed by Chapter 16 and the income taxes imposed by this chapter to the same extent as the amount is exempt from the federal income tax under Sections 276 or 278 of the RELIEF Act.
(2) Shall not be considered in determining the deductibility of otherwise deductible expenses, such as payroll, utilities, mortgage interest, and rent, allowed to be paid with the exempt funds, to the same extent as the expenses remain deductible in calculating federal income tax under Sections 276 or 278 of the RELIEF Act.
(3) Shall also be excluded from any and all calculations in determining a taxpayer’s federal income tax deduction pursuant to Chapter 16 or this chapter.
(b) This section applies to tax years ending after March 27, 2020.