Ivey signs bill on tax relief for families into law

Gov. Kay Ivey recently signed HB 231 into law, which provides tax relief for families in Alabama. 

Rep. Jim Carns (R – HD 48) and Sen. Dan Roberts (R – SD 15) sponsored the bill. In an announcement on Ivey's website, families are expected to 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,” Ivey said. “I commend the Alabama Legislature for their work on this and look forward to this benefitting Alabama families this tax season.”

Ivey's announcement detailed the specifics of how the bill works:

"Effective for the tax year ending on December 31, 2021, this act allows individual taxpayers to calculate their federal income tax deduction without consideration of certain items allowed under the American Rescue Plan Act. 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 December 31, 2020. The increased federal income tax deduction will reduce the amount of tax due on an Alabama individual income tax return."