By Zach Hester, Reporter • zach@southerntorch.com

MONTGOMERY, Ala. — Last week, Governor Kay Ivey (R-Ala.) signed a supplemental emergency proclamation to allow citizens and businesses statewide to avoid paying state taxes on certain benefits from 2020’s CARES Act. 

The proclamation comes as the state legislature’s session to address tax and economic development issues was delayed due to complications from COVID-19. It also extends sunset dates for the Alabama Jobs Act and Growing Alabama tax credits.

“This action is a short-term solution until these items can be considered by the full legislative body during the 2021 Regular Session,” said Ivey. “In the meantime, the people of Alabama need clear guidance prior to filing their 2020 taxes. Therefore, the state will not be collecting taxes from individuals or businesses who received benefits from the CARES Act because these benefits were designed to help our citizens survive the pandemic’s strain on the economy.”

Under this proclamation, revenue commissioners are directed to alter tax-return forms to ensure citizens and businesses will not be required to pay taxes to the state government on the financial relief provided by the CARES Act, which stands for Coronavirus Aid, Relief, and Economic Security Act.

For more information, please visit governor.al.gov.