Alabama Lawmakers Approve Pandemic-Related Tax Exemption
Alabama lawmakers have approved legislation to exempt the monthly child tax credit payments that families received during the pandemic from state taxation.
The Alabama Senate and Alabama House of Representatives on Thursday approved identical versions of the bill. The measure now goes to Alabama Gov. Kay Ivey for her signature.
Lawmakers said the change was needed or families would face paying tax on the benefits.
The federal American Rescue Plan legislation gave six monthly payments to eligible families as a partial advance on the federal child tax credit. Eligible families received $300 monthly for each child under 6 and $250 per child older than that.
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