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Eric Church

Gov. Kay Ivey signs tax bill providing relief to Alabama families


MONTGOMERY, Ala. – On Wednesday morning, Feb. 23, Gov. Kay Ivey signed into law House Bill 231.

This piece of legislation, sponsored by Sen. Dan Roberts (R – SD 15) and Rep. Jim Carns (R – HD 48), will provide tax relief for families throughout the state. By Gov. Ivey putting her signature on this important bill, it is being projected that Alabamians will save tens of millions of dollars.

“I am proud to sign this needed tax relief into law so that money will return directly into the hands of hardworking Alabamians,” said Gov. Ivey. “I commend the Alabama Legislature for their work on this and look forward to this benefiting Alabama families this tax season.”

This act allows individual taxpayers to calculate their federal income tax deduction without consideration of certain items allowed under the American Rescue Plan Act effective for the tax year that ended on Dec. 31, 2021.

The increased federal income tax deduction will reduce the amount of tax due on an Alabama individual income tax return.

Any reductions to the federal income tax attributable to the federal child tax credit, the earned income tax credit and federal child and dependent tax credits, will be calculated under the provisions of the Internal Revenue Code in effect on Dec. 31, 2020.

For more information on how to receive this additional tax deduction, click here.

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