Stimulus update: Alabama considers $800 rebate; Who would qualify? What have other states done?
Gov. Kay Ivey is backing a one-time tax rebate that could put as much as $800 in the pockets of Alabama families.
Speaking in her state-of-the-state address Tuesday, Ivey said the rebates would be funded through some $1.1 billion in federal COVID-19 relief money. Ivey’s proposing a one-time rebate of $400 for adults or $800 for families.
“A paycheck does not go as far as it did two years ago,” the governor told legislators and others gathered in the Old House Chamber of the Capitol. “That’s why I am calling on you to put nearly a billion dollars back into the hands of hardworking, taxpaying Alabamians through one-time rebates of $400. That means $800 for our working families, and it couldn’t come at a better time.”
Details of the tax proposal rebate – including who would qualify – will be in a bill expected to be filed when the regular session resumes March 21. Finance Director Bill Poole did confirm the rebate would go to those who filed state income tax returns. Timing for the payments is unclear.
If passed, Alabama would be the latest state to use federal funds to provide stimulus payments or rebates to its citizens.
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Here’s a look at what other states have done:
California
California began sending out payments from its $9.5 billion Middle Class Tax Refund at the end of 2022. The payments included refunds of up to $1,050.
Payments ranged from $400 to $1,050 for couples filing jointly and $200 to $700 for all other individuals depending on their income and whether they claimed a dependent.
Colorado
Colorado distributed stimulus payments of up to $750 for single tax filers and up to $1,500 for joint filers in 2022.
Delaware
Delaware distributed “relief rebate” payments of $300 to taxpayers who filed a return in 2020 with the money coming from a budget surplus.
Florida
Florida provided one-time $450 payments for 59,000 low-income families.
Georgia
Legislation in Georgia provided rebates of $250 for single filers, $375 for heads of households and $500 for those filing jointly. The money comes from a budget surplus in the state.
Hawaii
Hawaii’s Act 115 refund provided a one-time payment to qualifying taxpayers. Single filers with income under $100,000 were eligible for $300, dropping to $100 for single filers earning $100,000 and more. Married couples filing jointly with income under $200,000 were eligible for $300.
Idaho
Idaho provided rebates for taxpayers.
The state sent funds, $300 for single filers and $600 for joint filers, to eligible residents based on when the state’s taxation department received their 2021 tax return.
Indiana
Indiana provided payments of $125, regardless of income.
Minnesota
Frontline workers in Minnesota received a one-time payment of $750.
New Jersey
New Jersey’s refunds came in the forms of tax rebates.
Homeowners with incomes up to $150,000 received $1,500 rebates, while those with incomes between $150,000 and $250,000 received $1,000.
New Mexico
New Mexico gave residents a $500 rebate with an additional $250 for those earning less than $75,000 a year.
South Carolina
South Carolina offered rebates up to $800.
Virginia
Virginia distributed a one-time tax rebate of $250 for single filers and $500 for joint filers. The payments are being made to Virginia residents who had a tax liability for 2021.