Chapter 1 - Income Taxes
- Article 1 General Provisions.
- Section 40-18-1 Definitions
For the purpose of this chapter, the following terms shall have the respective meanings ascribed by this section: (1) BUSINESS TRUST. Any entity which ...
- Section 40-18-1.1 Operating rules
(a) For purposes of this chapter, the statement that gain, loss, income, basis, earnings and profits, or any other item shall be determined in ...
- Section 40-18-2 Levied; persons and subjects taxable generally
(a) In addition to all other taxes now imposed by law, there is hereby levied and imposed a tax on the taxable income, as ...
- Section 40-18-2.1 Income of foreign missionary exempt
All income earned from any missionary service rendered by a foreign missionary while he or she is physically present in a foreign country or ...
- Section 40-18-3 Income of officers or agents of the United States, etc
The salaries, fees, commissions or other income of officers or agents of the United States or its agencies and instrumentalities or its contractees, received ...
- Section 40-18-4 Interest or other income received from obligations of the United States or its possessions, agencies or instrumentalities
Interest or other income on obligations of the United States, or its possessions, or interest or other income on bonds or other securities of ...
- Section 40-18-5 Tax on individuals
The tax levied and imposed by Section 40-18-2 shall be computed as follows: (1) For a single person, head of family, or married persons ...
- Section 40-18-6 Gain or loss - Basis of property; adjusted basis
(a) Basis (unadjusted) of property. The basis of property shall be the cost of the property with the following exceptions: (1) INVENTORY VALUE. If ...
- Section 40-18-7 Gain or loss - Determination of amount
(a) Computation of gain or loss. Except as hereinafter provided in this section, the gain from the sale or other disposition of property shall ...
- Section 40-18-8 Gain or loss - Recognition
(a) General rule. Except as provided in this section, upon the sale or exchange of property, the entire amount of the gain or loss ...
- Section 40-18-9 Gain or loss - Optional method for returning as income increases in redemption value of securities purchased at a discount
If, in the case of a taxpayer owning any noninterest-bearing obligation issued at a discount and redeemable for fixed amounts increasing at stated intervals, ...
- Section 40-18-11 Inventory
Whenever in the opinion of the Department of Revenue the use of inventories is necessary in order clearly to determine the income of any ...
- Section 40-18-12 Net income of individuals - Defined
Repealed by Act 98–502, § 2. ...
- Section 40-18-13 Computation of income
(a) Income shall be computed on the basis of the same taxable year and in accordance with the same method of accounting that the ...
- Section 40-18-14 Adjusted gross income of individuals
The term "gross income" as used herein: (1) Includes gains, profits and income derived from salaries, wages, or compensation for personal services of whatever ...
- Section 40-18-14.1 Deferred compensation plans
Notwithstanding any other laws, all deferred compensation plans for public or private employees authorized in this state shall receive the same tax deferred treatment ...
- Section 40-18-14.2 Adjusted gross income
(a) The term "adjusted gross income," as used in this section, shall mean the gross income as defined by Section 40-18-14, minus the following ...
- Section 40-18-14.3 Gross income - Discount and interest
Gross income shall include original issue discount determined in accordance with 26 U.S.C. §§1271 to 1275, inclusive, and interest or other income determined in ...
- Section 40-18-15 Deductions for individuals generally
(a) No deduction shall be allowed for any losses, expenses, or interest deferred or disallowed pursuant to 26 U.S.C. § 267 or for any ...
- Section 40-18-15.1 Net income taxable income defined - Generally
For purposes of this chapter, the term "taxable income" or "net income" shall mean "gross income," as defined in Section 40-18-14, less the deductions ...
- Section 40-18-15.2 Net operating loss
Individuals may calculate a net operating loss from a trade or business and apply the net operating loss against prior taxable income or future ...
- Section 40-18-16 Depreciation
(a) Basis for depreciation. The basis upon which exhaustion, wear and tear, depreciation and obsolescence are to be allowed shall be such reasonable allowance ...
- Section 40-18-17 Items not deductible
In computing net income, no deduction shall in any case be allowed in respect of personal, living, or family expense; any amount paid out ...
- Section 40-18-18 Amortization of war or emergency facilities
Repealed by Act 98-502, § 2. ...
- Section 40-18-19 Exemptions - Generally
(a) The following exemptions from income taxation shall be allowed to every individual resident taxpayer: (1) Retirement allowances, pensions and annuities, or optional allowances, ...
- Section 40-18-19.1 Exemptions for severance, unemployment compensation, etc
(a) Effective for the 1997 state income tax year and each year thereafter, an amount up to twenty-five thousand dollars ($25,000) received as severance, ...
- Section 40-18-19.2 Exemption of certain death benefit payments for peace officer or fireman killed in line of duty
(a) Effective for the 2006 state income tax year and each year thereafter, any death benefit payments listed in subsection (e) that are paid ...
- Section 40-18-20 Exemptions - Military retirement benefits
(a) The first $4,750 retirement or compensation received as retirement benefit from the military services by any person retired from the military services of ...
- Section 40-18-21 Credits for taxes paid on income from sources without the state and for job development fees
(a)(1) For the purpose of ascertaining the income tax due under the provisions of this chapter by individual residents of Alabama whose gross income, ...
- Section 40-18-22 Taxpayers engaged in multistate business - Allocation and apportionment of deductions and exemptions
Taxpayers, including corporations, as well as subchapter K entities and Alabama S corporations, engaged in multistate business in such a manner as to subject ...
- Section 40-18-23 Taxpayers engaged in multistate business - Option of certain taxpayers to report and pay tax on basis of percentage of volume
Any taxpayer who has taxable income from business activities both within and without this state, whose only business activities within this state consist of ...
- Section 40-18-24 Taxation of subchapter K entity
(a) The amount of income, deduction, gain, loss, or credit includable or deductible by an owner of an interest in a subchapter K entity ...
- Section 40-18-24.1 Composite return and payment by nonresident owner of subchapter K entity
(a) The Department of Revenue shall permit a subchapter K entity which has income apportioned to Alabama in accordance with Section 40-18-22 to file ...
- Section 40-18-25 Estates and trusts
(a) For purposes of this chapter, the income and deductions, including the distribution deduction, of estates and trusts shall be determined in accordance with ...
- Section 40-18-25.1 Estates and trusts - Exemptions
(a) Trusts shall be exempt from the tax imposed by this chapter if they are exempt from federal income tax under 26 U.S.C. § ...
- Section 40-18-25.2 Estates and trusts - Deductions from gross income of net operating loss
(a) Nothing in Act 2006-114 shall be construed to change or otherwise affect a taxpayer's liability relating to a tax year beginning prior to ...
- Section 40-18-27 Individual taxpayer's returns; liability of innocent spouse
(a) Effective for tax years beginning after December 31, 1997, every taxpayer having an adjusted gross income for the taxable year of more than ...
- Section 40-18-26 Information from source of income
Every resident individual, corporation, association, or agent shall make a report to the Department of Revenue of complete information covering the amount of all ...
- Section 40-18-28 Returns of subchapter K entities and single member limited liability companies
Every subchapter K entity, and every single member limited liability company, shall make a return to the Department of Revenue for each taxable year, ...
- Section 40-18-29 Fiduciary returns
(a) Every fiduciary, except receivers appointed by authority of law in possession of part only of the property of a taxpayer, shall make a ...
- Section 40-18-30 Return when accounting period changes
(a) Taxpayer filing separate returns. If a taxpayer, with the approval of the Department of Revenue, changes the basis of computing taxable income from ...
- Section 40-18-31 Corporate income tax - Generally
(a) A corporation subject to the tax imposed by Section 40-18-2 shall pay a tax equal to six and one-half percent of the taxable ...
- Section 40-18-31.1 Election for foreign corporations to classify dividend income from certain subsidiaries as business or nonbusiness income
Repealed by Act 99-664, effective Dec. 31, 2000. ...
- Section 40-18-32 Corporate income tax - Exemptions
With the exception of unrelated business taxable income determined in accordance with 26 U.S.C. § 512, the tax imposed by Section 40-18-31 shall not ...
- Section 40-18-33 Corporate income tax - Taxable income
In the case of a corporation subject to the tax imposed by Section 40-18-31, the term "taxable income" means federal taxable income without the ...
- Section 40-18-34 Additions required by corporations
The following items shall be added to federal taxable income for purposes of computing taxable income under this chapter: (a) State and local income ...
- Section 40-18-35 Deductions allowed to corporations
(a) The following items shall be deducted from federal taxable income for purposes of computing taxable income under this chapter: (1) Refunds of state ...
- Section 40-18-35.1 Carry forward of net operating losses
In computing the taxable income of corporations subject to income tax as outlined in Section 40-18-35, there shall be allowed, in addition to the ...
- Section 40-18-36 Distributions by corporations
Repealed by Act 99-664, effective Dec. 31, 2000. ...
- Section 40-18-37 Items not deductible by corporations
In computing net income of corporations, no deduction shall in any case be allowed in respect to any of the items specified in Section ...
- Section 40-18-38 Additional deductions allowed for corporations; credits
Repealed by Act 99-664, effective Dec. 31, 2000. ...
- Section 40-18-39 Corporate returns
(a) Except as provided in subsection (c), every corporation, joint stock company, or association subject to income tax under this chapter shall file a ...
- Section 40-18-40 Tax to be reported on forms; department may assess additional tax penalty or interest
The income tax provided in this chapter shall be reported on forms as prescribed by the department. The failure to receive such form from ...
- Section 40-18-41 Amortization of ad valorem tax
Any surplus remaining from the proceeds of the tax imposed by this chapter after providing for interest and installment annual payments or annual amortization ...
- Section 40-18-42 Time and methods of payment of tax
(a) Time of payment for individuals. In the case of individuals the total balance of the tax owed after credits for taxes paid through ...
- Section 40-18-44 Installment method
Income arising from an installment sale (including the sale by a dealer in personal property) may be reported in accordance with 26 U.S.C. §453, ...
- Section 40-18-50 Penalty for failure to make return within time specified
Any person or corporation, joint stock company or association liable to income tax under this chapter, which shall fail to make return as required ...
- Section 40-18-51 Applicability of lien provisions; disposition of collections; collection prior to delinquency
In every respect herein specified in this chapter, returns for the levy and collection of the taxes herein provided for shall be subject to ...
- Section 40-18-53 Inspection of returns by federal or foreign state agents
All income tax returns filed under this chapter, or copies thereof on file with the State Department of Revenue, shall be open to inspection ...
- Section 40-18-54 Supervision of assessment and collection
The assessment and collection of the income taxes imposed by this chapter shall be under the supervision of the Department of Revenue. ...
- Section 40-18-55 Statement to be furnished by taxpayer
Every corporation, joint stock company, or association organized under the laws of the state or organized under the laws of any other state, nation, ...
- Section 40-18-56 Furnishing sworn statement of annual return of income to department; penalties for failure to comply; limitations on inspection of taxpayer's records
The Department of Revenue may at any time, in its discretion, require the taxpayer to furnish a sworn statement of the annual return of ...
- Section 40-18-57 Rules to be promulgated by Department of Revenue
The Department of Revenue shall from time to time, as said department shall deem desirable, promulgate such reasonable rules and regulations governing procedure and ...
- Section 40-18-58 Appropriation
There is hereby appropriated out of the proceeds of the income tax levied and collected under the provisions of this chapter to the Property ...
- Section 40-18-59 Additional appropriations
In addition to all other appropriations heretofore or hereinafter made, there is hereby appropriated to the Department of Revenue for the fiscal year ending ...
- Article 2 Withholding Tax; Optional Short Form Tax; Declaration of Estimated Tax.
- Division 1 General Provisions.
- Section 40-18-70 Definitions
For the purpose of this article, the following terms shall have the respective meanings ascribed by this section: (1) EMPLOYEE. "Employee" as defined in ...
- Section 40-18-71 Withholding tax
(a) Every employer, as defined under the laws of the United States in effect July 1, 1982, or as subsequently may be defined, with ...
- Section 40-18-72 Included and excluded wages
If the remuneration paid by an employer to an employee for services performed during one half or more of any payroll period of not ...
- Section 40-18-73 Withholding certificates
(a) Every employee, on or before the date of commencement of employment, shall furnish his or her employer with a signed Alabama withholding exemption ...
- Section 40-18-73.1 Provisional employers
(a) This section shall be known and may be cited as the "Provisional Construction Employer Withholding Act." (b)(1) Subsequent to August 1, 2007, in ...
- Section 40-18-74 Payment of amounts withheld
(a) Every employer required to deduct and withhold tax under Section 40-18-71 shall for each quarterly period, on or before the last day of ...
- Section 40-18-75 Statement to be furnished employee
(a) Every person required to deduct and withhold from an employee a tax under Section 40-18-71 shall furnish to each such employee in respect ...
- Section 40-18-76 Liability for tax withheld
An employer shall be liable for the payment of the tax required to be deducted and withheld under Section 40-18-71 and shall not be ...
- Section 40-18-77 Refund to employer
(a) Where there has been an overpayment of tax under Section 40-18-71, refund or credit shall be made to the employer only to the ...
- Section 40-18-78 Credit for tax withheld
The amount deducted and withheld as tax under Section 40-18-71 during any calendar year upon the wages of any individual shall be allowed as ...
- Section 40-18-79 Overpayment of tax; credit or refund available
Where there has been an overpayment of any tax imposed under Section 40-18-71 or 40-18-82, the amount of such overpayment may, if a petition ...
- Section 40-18-80 Penalty where certain percent of tax exceeds estimated tax for individuals
(a) If 90 percent of the tax, determined without regard to the credit under Section 40-18-78, in the case of individuals other than farmers ...
- Section 40-18-80.1 Addition to tax on corporations
(a) Addition to tax. Except as otherwise provided in this section, in the case of any underpayment of estimated tax by a corporation, there ...
- Section 40-18-81 Optional short form tax
Any individual may elect to file a "short form" return provided by the Department of Revenue and pay any tax due; provided, that the ...
- Section 40-18-82 Estimated tax
(a) Individuals shall remit in accordance with subsection (b) if net income from sources other than wages, in the case of a single person ...
- Section 40-18-83 Payment of estimated tax
(a) The estimated tax provided for in Section 40-18-82 shall be paid as follows: (1) If the requirements of subsection (a) of Section 40-18-82 ...
- Section 40-18-83.1 Declaration and payment of estimated tax by corporations
The 1983 amendment to Section 40-18-42 with respect to the requirements for corporations to file declarations of estimated tax and the payments of such ...
- Section 40-18-84 Adjusted gross income
Repealed by Act 98-502, §2. ...
- Section 40-18-85 Estates and fiduciaries
Nothing in this article shall be construed to require declarations to be filed by estates and trusts. ...
- Division 2 Wage Winnings Withholding Tax.
- Section 40-18-90 Definitions
As used in this division, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise: (1) PERSON. Individuals, firms, ...
- Section 40-18-91 Wager proceeds; withholding of state income tax
(a) Each person making any payment of proceeds from a wager which constitutes "winnings subject to withholding" as defined by Section 40-18-90, shall deduct ...
- Article 3 Setoff Debt Collection.
- Section 40-18-100 Definitions
For the purposes of this article, the following terms shall have the respective meanings ascribed by this section: (1) CLAIMANT AGENCY. Only: a. The ...
- Section 40-18-101 Remedy additional
The collection remedy authorized by this article is in addition to and not in substitution for any other remedy available by law. ...
- Section 40-18-102 Collection of debts by setoff
(a) A claimant agency may submit debts in excess of $25 to the department for collection through setoff, under the procedure established by this ...
- Section 40-18-103 Procedure for setoff and notification of taxpayer
(a) Within a time frame specified by the department, a claimant agency seeking to collect a debt through setoff shall supply the information necessary ...
- Section 40-18-104 Hearing procedure
(a) When the claimant agency receives a protest or application in writing from a taxpayer within 30 days of the notice issued by the ...
- Section 40-18-105 Finalization and notice of setoff
(a) Upon final determination of the amount of the debt due and owing by means of a hearing provided by Section 40-18-104 or by ...
- Section 40-18-106 Priority
The department has priority over every claimant agency for collection by setoff under this article. ...
- Section 40-18-107 Commissioner may provide claimant agency information; confidentiality of information
(a) Notwithstanding any confidentiality statute, the Commissioner of Revenue may provide to a claimant agency all information necessary to accomplish and effectuate the intent ...
- Section 40-18-108 Effect of setoff on refund
When the setoff authorized by this article is exercised, the refund which is set off shall be deemed granted. ...
- Section 40-18-109 Issuance by State Treasurer of separate warrants
In those cases where the amount claimed to be due and owing by the claimant agency is less than the refund due the taxpayer ...
- Article 4 Solar Energy Tax Credits.
- Article 4A Rural Physician Tax Credit.
- Section 40-18-130 Legislative intent
It is the intent of the Legislature to institute programs that will make Alabama more competitive with other states in the recruitment and retention ...
- Section 40-18-131 Definitions
For the purposes of this article, the following words have the following meanings, respectively, unless the context clearly indicates otherwise: (1) RURAL PHYSICIAN. A ...
- Section 40-18-132 Physicians qualifying for credit; time limit; promulgation of rules
Beginning with the 1994 tax year, a person qualifying as a rural physician shall be allowed a credit against the tax imposed by Section ...
- Article 4B Credits Against State Income Tax Liability.
- Section 40-18-135 Definitions
The following definitions apply to this article: (1) APPROVED BASIC SKILLS EDUCATION PROGRAM. A basic skills education program that has received written approval from ...
- Section 40-18-136 Credit to employer
Beginning with tax year 1993, a tax credit of 20 percent of the actual costs of education shall be provided to an employer who ...
- Section 40-18-137 Credit limited to income tax liability
The tax credit available to an employer pursuant to this article shall be limited to the amount of the employer's income tax liability for ...
- Section 40-18-138 Rules regarding procedures for approving education programs
The Alabama Department of Education shall promulgate and adopt rules regarding the methods, procedures, and standards it deems necessary for approving employer provided or ...
- Section 40-18-139 Reimbursement to employer
No tax credit shall be granted pursuant to this article to any employer of an employee participating in a basic skills education program if ...
- Article 5 Voluntary Check-off Designations on State Income Tax Returns.
- Section 40-18-140 Contribution designations
(a)(1) Each Alabama resident individual income taxpayer desiring to contribute to any of the programs listed in subsection (b) may designate an amount of ...
- Section 40-18-141 Arts Development Fund - Established; appropriation; distribution of funds
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-142 Alabama Nongame Wildlife Program - Legislative declarations and intent
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-143 Alabama Nongame Wildlife Program - Contribution designation form
THIS SECTION WAS REPEALED IN THE 2006 REGULAR SESSION BY ACT 2006-503, EFFECTIVE FOR TAX YEARS BEGINNING DECEMBER 31, 2005. THIS IS NOT IN ...
- Section 40-18-144 Alabama Nongame Wildlife Program - Appropriation
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-145 Alabama Nongame Wildlife Program - Implementation; no rights of Department of Conservation and Natural Resources
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-146 Political party defined; designated contribution by taxpayers filing state income tax return; disposition of contributions
THIS SECTION WAS REPEALED IN THE 2006 REGULAR SESSION BY ACT 2006-503, EFFECTIVE FOR TAX YEARS BEGINNING DECEMBER 31, 2005. THIS IS NOT IN ...
- Section 40-18-147 Alabama Aging Program
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-148 Alabama Veterans' Home Program; legislative intent; designation form; appropriation
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-149 Alabama Indian Affairs Commission - Contribution designation
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-150 Foster Care Trust Fund - Contribution designation
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-151 Alliance for the Mentally Ill of Alabama and Mental Health Consumers of Alabama - Contribution designation
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-152 Alabama Breast and Cervical Cancer Research - Program Contribution designation
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Section 40-18-153 Alabama 4-H Club Foundation, Incorporated
Repealed by Act 2006-503, §2, effective for tax years beginning after December 31, 2005. ...
- Article 6 Alabama S Corporations.
- Section 40-18-160 General provisions
(a) An Alabama S corporation shall not be subject to the tax imposed by Section 40-18-31. (b) For purposes of this chapter, an "Alabama ...
- Section 40-18-161 Determination of taxable income
(a) The taxable income of an Alabama S corporation shall be determined in the same manner as in the case of an individual except ...
- Section 40-18-162 Determination of tax of shareholder
(a) In determining the tax of a shareholder for the shareholder's taxable year in which the taxable year of the Alabama S corporation ends, ...
- Section 40-18-163 Adjustments for services rendered or capital furnished by spouse, etc., of shareholder or beneficiary
If an individual who is the spouse or lineal descendant or ancestor of one or more shareholders of an Alabama S corporation or who ...
- Section 40-18-164 Increase or decrease in basis of shareholder's stock; special rules
(a) The basis of each shareholder's stock in an Alabama S corporation shall be increased for any period by the sum of the following ...
- Section 40-18-165 Distribution of property generally
(a) A distribution of property made by an Alabama S corporation with respect to its stock to which, but for this article, Section 40-18-36 ...
- Section 40-18-166 "Accumulated adjustments account" defined; application generally; "S period" defined; applicability of subdivision (c)(1) of Section 40-18-165 to certain distributions; "affected shareholder" defined
(a)(1) Except as provided in subsection (b), for purposes of this article, the term "accumulated adjustments account" means an account of the Alabama S ...
- Section 40-18-167 Applicability of chapter
Except to the extent inconsistent with this article, the rules of Article 1 of this chapter shall apply to an Alabama S corporation and ...
- Section 40-18-168 "Carryforward" and "carryback" provisions
No carryforward and no carryback arising for a taxable year for which a corporation is not an Alabama S corporation may be carried to ...
- Section 40-18-169 Adjustments to earnings and profits
(a) Except as provided in subsections (b) and (c) of this section, no adjustment shall be made to the earnings and profits of an ...
- Section 40-18-170 Circumstances under which corporation treated as partnership; "two-percent shareholder" defined
For purposes of applying the provisions of this chapter which relate to employee fringe benefits, the Alabama S corporation shall be treated as a ...
- Section 40-18-171 Determination of shareholder's pro rata share; "affected shareholders" defined
(a) For purposes of this article, except as provided in subsection (b), each shareholder's pro rata share of any item for any taxable year ...
- Section 40-18-172 "Post-termination transition period" and "determination" defined
(a) For purposes of this article, the term "post-termination transition period" means: (1) The period beginning on the day after the last day of ...
- Section 40-18-173 Interpretation of article generally
Due consideration shall be given in the interpretation of this article to applicable sections of the U.S. Internal Revenue Code in effect from time ...
- Section 40-18-174 Tax imposed on certain built-in gains
(a) If for any taxable year beginning in the recognition period an Alabama S corporation has a net recognized built-in gain, there is hereby ...
- Section 40-18-175 Tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts
(a) If for the taxable year an Alabama S corporation has accumulated earnings and profits at the close of the taxable year derived from ...
- Section 40-18-176 Nonresident shareholder composite returns
(a) The Department of Revenue shall permit an Alabama S corporation to file composite returns and to make composite payments on behalf of some ...
- Article 7 Tax Credits for Projects of New Businesses and Business Expansions.
- Section 40-18-190 Definitions
The following terms shall have the following meanings, respectively, when used in this article unless the context clearly requires otherwise: (1) BASE WAGE REQUIREMENT. ...
- Section 40-18-191 Filing with department written statement of intent to claim credit
At anytime prior to the date on which a qualifying project is placed in service, an investing company may file with the department a ...
- Section 40-18-192 Effect of compliance with requirements; agreements specifying method by which income generated and allocation of credit
Subject to compliance with Section 40-18-193, each investing company shall, upon filing of the statement required by Section 40-18-191 and upon the making of ...
- Section 40-18-193 Qualifications for capital credits
(a) It shall be a condition to the receipt of a capital credit that either of the following occur: (1) Not less than 20 ...
- Section 40-18-194 Entities allowed capital credit
(a) The Legislature recognizes that a substantial number of businesses are organized as limited liability companies, partnerships, and other types of business entities and ...
- Section 40-18-195 Capital credit not to exceed capital costs of project
The capital credit shall be reduced or eliminated with respect to a qualifying project at the time the sum of all capital credits received ...
- Section 40-18-196 Department to report annually
The department shall report annually to the Legislature and the public as to qualifying projects with respect to which capital credits are claimed during ...
- Section 40-18-197 Department to adopt regulations and to audit companies
The department shall adopt regulations to carry out the provisions of this article. The department shall audit each investing company periodically to monitor compliance ...
- Section 40-18-198 Officer to file affidavit with department
At the time of filing any tax return with the department in which any capital credit is claimed under this article, the chief executive ...
- Section 40-18-199 State Industrial Development Authority not to grant credits except for certain entities
This article shall supersede the provisions of the 1993 Act pertaining to the income tax credits and the job development fee provided for in ...
- Section 40-18-200 Entities approved by State Industrial Development Authority prior to January 16, 1995, may elect to receive credit under article
Each business entity and each project for each business entity with respect to which the State Industrial Development Authority adopted, prior to January 16, ...
- Section 40-18-201 Companies to maintain records; regulations concerning determination of income
Each investing company receiving a capital credit shall maintain or cause to be maintained records with respect to the qualifying project sufficient to allow ...
- Section 40-18-202 Availability of capital credits for new projects after December 31, 1998
Capital credits authorized by this article shall not be available for new qualifying projects after December 31, 1998, unless the Legislature, by joint resolution, ...
- Section 40-18-203 Provisions to govern administration of article
The administration of this article by the department shall be governed by the provisions of the Taxpayers' Bill of Rights and the Uniform Revenue ...
- Article 8 Coal Production Tax Credit.
- Section 40-18-220 Credit for corporations producing coal mined in Alabama
For the tax years beginning on and after January 1, 1995, every corporation, whether a "subchapter S" corporation, as defined by the 1995 Internal ...
- Section 40-18-221 Department to promulgate and issue rules and regulations
The Department of Revenue shall promulgate and issue rules and regulations to implement and administer this article. ...
- Article 9
- Section 40-18-240 Definitions
As used in this article, the following terms shall have the following meanings: (1) CAPITAL COSTS. All costs and expenses incurred by one or ...
- Section 40-18-241 Written statement of intent to claim credit
An investing company seeking the capital credit shall, prior to the date on which a qualifying project is placed in service, obtain the written ...
- Section 40-18-242 Written agreements with department
Each investing company shall, upon securing the approvals and filing of the statement required by Section 40-18-241 and upon the making of qualified investments, ...
- Section 40-18-243 Availability of credit on pass-through basis
(a) The Legislature recognizes that a substantial number of businesses are organized as limited liability companies, partnerships, and other types of business entities and ...
- Section 40-18-244 Credits not to exceed costs
The capital credit shall be reduced or eliminated with respect to a qualifying project at the time the sum of all capital credits received ...
- Section 40-18-245 Report to Legislature
The department shall report annually to the Legislature and the public as to qualifying projects with respect to which capital credits are claimed during ...
- Section 40-18-246 Regulations; periodic audits
The department shall adopt regulations to carry out the provisions of this article. The department shall audit each investing company periodically to monitor compliance ...
- Section 40-18-247 Affidavit of compliance
At the time of filing any tax return with the department in which any capital credit is claimed under this article, the chief executive ...
- Section 40-18-248 Maintenance of records; promulgation of regulations
Each investing company receiving a capital credit shall maintain or cause to be maintained records with respect to the qualifying project sufficient to allow ...
- Section 40-18-249 Availability of credit after December 31, 2005
Capital credits authorized by this article shall not be available for new qualifying projects after December 31, 2005, unless the Legislature, by joint resolution, ...
- Section 40-18-250 Administration of article
The administration of this article by the department shall be governed by the provisions of the Taxpayers' Bill of Rights and the Uniform Revenue ...
