40-18-511. One-Time Refundable Income Tax Credit for Partial Offset of Sales Tax Paid on Groceries.
(a) As used in this section, the term “qualified taxpayer” means an individual taxpayer who filed an Alabama individual income tax return pursuant to the tax levied in Section 40-18-5, on or before October 17, 2022, for the taxable year that began on January 1, 2021, including any extensions that have been granted. The term shall not include any of the following:
(1) A nonresident.
(2) An estate or trust.
(3) An individual who was claimed as a dependent by another taxpayer for federal or Alabama income tax purposes for the taxable year that began on January 1, 2021.
(b) Each qualified taxpayer is entitled to a one-time refundable income tax credit to partially offset the amount of sales tax paid on groceries in the taxable year in an amount based on the qualified taxpayer’s filing status for the taxable year that began on January 1, 2021, equal to:
(1) One hundred fifty dollars ($150) for single, head of family, and married filing separate.
(2) Three hundred dollars ($300) for married filing joint.
(c) The refundable income tax credit shall be electronically deposited into the bank account of the qualified taxpayer based on the appropriate information as indicated on the return for the taxable year that began on January 1, 2021; except for any qualified taxpayer of which the Department of Revenue does not have bank account information, in which case the refundable income tax credit shall be mailed by check to the qualified taxpayer.
(d) The Alabama Department of Revenue shall commence issuing refundable income tax credits no sooner than November 30, 2023.
(e) The refundable income tax credit shall not constitute taxable income for Alabama income tax purposes. The refundable income tax credit provided under this section shall not be subject to offset or debt collection against any liability.
(f) In no event shall the refundable income tax credit provided accrue interest for the benefit of the qualified taxpayer or be paid or credited to the qualified taxpayer with interest.
(g) The Department of Revenue may adopt rules for the implementation and administration of this article.
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(Act 2023-377, §2; Act 2023-511, §2.)
