Governor Kay Ivey spoke on providing meaningful financial relief to working Alabama residents during a Nov. 1 media release. As part of the announcement, she reminded taxpayers that one-time tax rebates are included in her 2023 budget and scheduled to begin going out on Dec. 1.

News about the rebates came as part of Ivey’s 2023 State of the State Address, during which she described her plan to use Alabama’s historic budget surplus to provide meaningful financial relief to working families. 

“This is the people’s money, and it’s only right, while acknowledging we are recording revenues far exceeding normal and sustainable levels, we give a fair share of this money directly back to the people of Alabama,” Ivey said.

Rebates will be issued by the Alabama Department of Revenue (ALDOR) beginning December 1 and will not be taxable for Alabama income tax purposes.

“From the very beginning, it has been my belief that it is the responsibility of government to be good stewards of taxpayer dollars while actively looking for ways to support citizens through tough times,” said Ivey. “Our country is in the midst of tough times, and Alabama families from all walks of life are unfortunately seeing that their paychecks aren’t going as far as they once did. Thanks to our unwavering commitment to fiscal responsibility, one-time tax rebates will be with our hard-working Alabamians in time for the holidays.”

Taxpayers must have filed a 2021 individual tax return, received by ALDOR on or before Oct. 17, 2022 to qualify. Those who do not qualify for the rebates include non-residents, estates or trusts or anyone who was claimed as a dependent during the 2021 tax year.

“The resilience of hardworking Alabamians and conservative fiscal policies passed by the Legislature have made our state economy strong,” said state Senate President Pro Temp Greg Reed. “With a strong state economy built on investment in Alabama’s future, we are equipped to be in a healthy economic position as a state for years to come. Because we are in such a strong economic position as a state, it is our job as responsible stewards of taxpayer money to return money to the people of Alabama through this rebate during the holiday season.”

Rebates are based on the qualified taxpayer’s filing status and may be issued at amounts of either $150 or $300:

• $150 for single, head of family, and married filing separate; or
• $300 for married filing joint

“Inflation has hit our state hard in recent years,” said Senate Minority Leader Bobby Singleton. “These rebates will return some dollars back to the taxpayers and provide relief to help ease that inflationary burden.”

The means by which qualified taxpayers received their 2021 tax year refunds – direct deposit or paper check – will determine who rebates are issued. Paper checks will be issued for qualified taxpayers who did not receive a 2021 tax year refund.

“In recent years, we’ve witnessed federal spending spiraling out of control, resulting in some of the highest inflation rates in decades,” said Speaker of the House Nathaniel Ledbetter. “This has had a tangible impact on families in our state. The Alabama House worked hand-in-glove with the governor to help ease that burden.”