For tax years ending after the enactment of the federal American Rescue Plan Act of 2021, any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1005 of the federal American Rescue Plan Act shall be all of the following:

(1) Exempt from income taxes imposed by this chapter to the same extent as the amount is exempt from federal income tax under Section 1005 of the federal American Rescue Plan Act of 2021.
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Alabama Code 40-18-501

  • following: means next after. See Alabama Code 1-1-1
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(2) Not considered in determining the deductibility of otherwise deductible expenses allowed to be paid with the exempt funds, including, but not limited to, payroll, utilities, mortgage interest, or rent, to the same extent as the expenses remain deductible in calculating federal income tax under Section 1005 of the federal American Rescue Plan Act of 2021.
(3) Excluded from any and all calculations in determining a taxpayer’s federal income tax deduction pursuant to this chapter.
  Previous section
Next section  
 Article 24 Contents