On January 28, HB 170 and its Senate counterpart, SB 98, were prefiled with the Alabama Legislature and designated as three separate acts: (i) The Alabama Taxpayer Stimulus Freedom Act of 2021, (ii) The Alabama Business Tax Competitiveness Act, and (iii) The Alabama Electing Pass-Through Entity Tax Act. The landmark legislation would exempt from Alabama income tax a variety of federal CARES Act/Consolidated Appropriations Act tax benefits, grants, loans and subsidies, while implementing other business tax reform measures, and allowing certain pass-through entities to elect to be taxed at the entity level as a means to address the federal $10,000 annual “SALT Cap.” Here is a summary of each part of the proposed legislation: