Under the order issued by Gov. Kay Ivey, Alabama taxpayers will not be subject to tax on income earned through loan programs of the Coronavirus Aid, Relief and Economic Security Act
![](http://www.law360.com/images/lexis_advance/kb-icon-red.png)
"I find that excluding CARES Act benefits from taxation under Alabama law is necessary to promote, protect and secure the economy of the state of Alabama," Ivey said.
In addition, benefits will not be included in calculations for income tax deductions under the order, the latest in a series of proclamations meant to address the novel coronavirus pandemic.
Ivey also moved to extend the Dec. 31 sunset date for a series of tax credits that were in place before the onset of the pandemic. She said allowing the construction and business credits to expire would damage the state economy at a dangerous time.
The order extended the Alabama Jobs Act and Growing Alabama tax credits to the time the state Legislature could pass legislation mandating an extension, or to the last day of the next legislative session, whichever comes first.
--Editing by Vincent Sherry.
For a reprint of this article, please contact reprints@law360.com.