(a) In addition to all other taxes now imposed by law, there is hereby levied and imposed a tax on the taxable income, as defined in this chapter, which tax shall be assessed, collected, and paid annually at the rate specified herein and for each taxable year as hereinafter provided. Persons and subjects taxable under this chapter are:
(1) Every individual residing in Alabama.
(2) Every corporation domiciled in Alabama or licensed or qualified to transact business in Alabama.
(3) Every corporation doing business in Alabama or deriving income from sources within Alabama, including income from property located in Alabama.
(4) Every nonresident estate or nonresident trust receiving income from property owned or business transacted in Alabama.
(5) Every resident estate and resident trust.
(6) Every nonresident individual receiving income from property owned or business transacted in Alabama.
(b) Every natural person domiciled in the State of Alabama, and every other natural person who maintains a permanent place of abode within the state or spends in the aggregate more than seven months of the income year within the state, shall be presumed to be residing within the state for the purposes of determining liability for income taxes under this chapter.
Structure Code of Alabama
Title 40 - Revenue and Taxation.
Article 1 - General Provisions.
Section 40-18-1 - Definitions.
Section 40-18-1.1 - Operating Rules.
Section 40-18-2 - Levied; Persons and Subjects Taxable Generally.
Section 40-18-2.1 - Income of Foreign Missionary Exempt.
Section 40-18-3 - Income of Officers or Agents of the United States, Etc.
Section 40-18-5 - Tax on Individuals.
Section 40-18-6 - Gain or Loss - Basis of Property; Adjusted Basis.
Section 40-18-6.1 - Gain or Loss — Special Rules for Capital Gains Invested in Opportunity Zones.
Section 40-18-7 - Gain or Loss - Determination of Amount.
Section 40-18-8 - Gain or Loss - Recognition.
Section 40-18-8.1 - Gain or Loss — Recognition of Gains Invested in Opportunity Zones.
Section 40-18-12 - Net Income of Individuals - Defined.
Section 40-18-13 - Computation of Income.
Section 40-18-14 - Adjusted Gross Income of Individuals.
Section 40-18-14.1 - Deferred Compensation Plans.
Section 40-18-14.2 - Adjusted Gross Income.
Section 40-18-14.3 - Gross Income - Discount and Interest.
Section 40-18-15 - Deductions for Individuals Generally.
Section 40-18-15.1 - Net Income Taxable Income Defined - Generally.
Section 40-18-15.2 - Net Operating Loss.
Section 40-18-15.3 - Deductions for Health Insurance Premiums.
Section 40-18-15.6 - Deductions for Contributions Made to Health Savings Accounts.
Section 40-18-15.7 - Optional Increased Standard Deduction for Qualified Persons.
Section 40-18-16 - Depreciation.
Section 40-18-17 - Items Not Deductible.
Section 40-18-18 - Amortization of War or Emergency Facilities.
Section 40-18-19 - Exemptions - Generally.
Section 40-18-19.1 - Exemptions for Severance, Unemployment Compensation, Etc.
Section 40-18-20 - Exemptions - Military Retirement Benefits.
Section 40-18-21.1 - Annual Report of Credits Claimed for Taxes Paid to Foreign Countries.
Section 40-18-24 - Taxation of Subchapter K Entity.
Section 40-18-24.1 - Composite Return and Payment by Nonresident Owner of Subchapter K Entity.
Section 40-18-24.2 - Taxation of Pass-Through Entities.
Section 40-18-24.4 - Alabama Electing Pass — Through Entity Tax Act.
Section 40-18-25 - Estates and Trusts.
Section 40-18-25.1 - Estates and Trusts - Exemptions.
Section 40-18-25.2 - Estates and Trusts - Deductions From Gross Income of Net Operating Loss.
Section 40-18-26 - Information From Source of Income.
Section 40-18-27 - Individual Taxpayer's Returns; Liability of Innocent Spouse.
Section 40-18-28 - Returns of Subchapter K Entities and Single Member Limited Liability Companies.
Section 40-18-29 - Fiduciary Returns.
Section 40-18-30 - Return When Accounting Period Changes.
Section 40-18-31 - Corporate Income Tax - Generally.
Section 40-18-31.2 - Factor Presence Nexus Standard for Business Activity.
Section 40-18-32 - Corporate Income Tax - Exemptions.
Section 40-18-33 - Corporate Income Tax - Taxable Income.
Section 40-18-34 - Additions Required by Corporations.
Section 40-18-35 - Deductions Allowed to Corporations.
Section 40-18-35.1 - Carry Forward of Net Operating Losses.
Section 40-18-36 - Distributions by Corporations.
Section 40-18-37 - Items Not Deductible by Corporations.
Section 40-18-38 - Additional Deductions Allowed for Corporations; Credits.
Section 40-18-39 - Corporate Returns.
Section 40-18-39.1 - Business Interest Expense Deduction Limitations.
Section 40-18-41 - Amortization of Ad Valorem Tax.
Section 40-18-42 - Time and Methods of Payment of Tax.
Section 40-18-44 - Installment Method.
Section 40-18-50 - Penalty for Failure to Make Return Within Time Specified.
Section 40-18-53 - Inspection of Returns by Federal or Foreign State Agents.
Section 40-18-54 - Supervision of Assessment and Collection.
Section 40-18-55 - Statement to Be Furnished by Taxpayer.
Section 40-18-57 - Rules to Be Promulgated by Department of Revenue.
Section 40-18-58 - Appropriation.
Section 40-18-59 - Additional Appropriations.
Section 40-18-60 - Covid-19 Recovery Capital Credit Protection Act of 2021.