Alabama HB657 offers a one-time refundable income tax credit for qualified taxpayers for the 2025 tax year.

Alabama HB657 introduces a one-time refundable income tax credit for qualified taxpayers for the 2025 tax year. The credit amount varies based on filing status: $250 for single or married filing separately, $375 for head of household, and $500 for married filing jointly. The refund is the lesser of the credit amount or the taxpayer's 2024 income tax liability. The refund is not taxable and cannot accrue interest. The credit is not available to nonresidents, estates, trusts, or dependents. The refund is subject to setoff debt collection provisions and can be issued electronically or by check.

Alabama HB657 offers a one-time refundable income tax credit for qualified taxpayers for the 2025 tax year.

Alabama HB657 introduces a one-time refundable income tax credit for qualified taxpayers for the 2025 tax year. The credit amount varies based on filing status: $250 for single or married filing separately, $375 for head of household, and $500 for married filing jointly. The refund is the lesser of the credit amount or the taxpayer's 2024 income tax liability. The refund is not taxable and cannot accrue interest. The credit is not available to nonresidents, estates, trusts, or dependents. The refund is subject to setoff debt collection provisions and can be issued electronically or by check.