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COVID-19 Child Tax Credit Signed into Law

COVID-19 Child Tax Credit Signed into Law

February 25, 2022 Last Edit: June 5, 2025

COVID-19 Child Tax Credit Signed into Law

Gov. Kay Ivey has signed HB 231 into law. The bill, introduced in the House by Rep. Jim Carns (Birmingham) and managed in the Senate by Sen. Dan Roberts (Birmingham), was needed to change the state tax code to ensure taxpayers received the full benefit of the federal COVID-19 relief child tax credit. In Alabama, about 560,000 families with a combined 960,000 children received the payments. With the measure in place, these families will avoid an $87 million state income tax payment. Revenue Commissioner Vernon Barnett said taxpayers who already filed their 2021 state tax returns electronically do not have to file amended returns. The department will automatically recompute the federal income tax deduction for eligible individual taxpayers who e-filed prior to the passage of Act No 2022-37.
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