MONTGOMERY, Ala. – The State Senate today passed SB189, or the Small Business Relief and Revitalization Act of 2022, sponsored by Senator Garlan Gudger (R-Cullman) that would provide several significant relief provisions for Alabama taxpayers and small businesses.

“Small businesses are vital to the viability and sustainability of Alabama’s economy. These businesses are the foundation of our communities and faced extreme obstacles and challenges as a result of the pandemic,” said Gudger. “Small businesses took a major hit over the last two years, and the pandemic substantially hindered growth and job creation for these enterprises. We have made a great effort in the legislature throughout that time to provide them with the much-needed relief they deserve.”

Senate President Pro Tem Greg Reed (R-Jasper) commended Senator Gudger for his efforts and those involved on the passage of the bill:

“Senator Gudger has done a tremendous job spearheading this important bill to provide tax relief to hardworking families and small businesses across Alabama,” said Reed. “I was happy to co-sponsor this bill and was proud to see my colleagues come together to pass it as a priority piece of legislation. The pandemic has damaged livelihoods in my district and in every community in Alabama, and the Senate is actively working to ensure that the government doesn’t get in the way of relief and recovery for the Alabamians who need it most. I also thank the Alabama Small Business Commission and Lt. Governor Will Ainsworth for their continued leadership in ensuring our state is doing everything possible to be the best place in the world to do business, work, worship, and raise a family.”

Background on Small Business Relief and Revitalization Act of 2022

SB189 would ensure economic relief for farmers in receipt of the American Rescue Plan Act of 2021 (ARPA). It would provide that any amount of cancellation of indebtedness income resulting from loan forgiveness for disadvantaged farmers and ranchers provided under Section 1005 of ARPA are not treated as income under Alabama law, not considered in determining deductibility of otherwise deductible expenses, and excluded from calculations in determining federal income tax deduction.

This bill would provide relief for businesses by realigning the filing date for corporate tax returns, allowing a one-month extension of the due date of tax returns for Alabama financial institution excise taxpayers and corporate income tax taxpayers.   

It would also relieve regulatory burdens and provide tax relief for small businesses by increasing the estimated threshold calculation from $2,500 to $5,000, allowing sales tax licensees the option of a payment of certified funds in lieu of securing a surety bond, and exempting up to $40,000 in businesses personal property from ad valorem taxation by the state.

“This is a huge victory for Alabama taxpayers and small businesses,” Gudger added. “I appreciate the support of Lt. Gov. Will Ainsworth, Representative Danny Garrett, and my Senate colleagues from both sides of the aisle to tackle this important issue. The momentum is strong to ensure the business environment in Alabama thrives and prospers, with continued possibilities for opportune growth and development.”

The bill and its companion bill HB82, sponsored by Representative Danny Garrett (R-Trussville), both passed with overwhelming support in the Senate.

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