Code of Alabama
Article 1 - General Provisions.
Section 40-18-35.3 - Deductions From Federal Taxable for Amounts Included in Income Under 26 u.s.c. § 118(b)(2).

Code of Alabama

Title 40 - Revenue and Taxation.

Chapter 18 - Income Taxes.

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 40-18-4 - Interest or Other Income Received From Obligations of the United States or Its Possessions, Agencies or Instrumentalities.

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 40-18-9 - Gain or Loss - Optional Method for Returning as Income Increases in Redemption Value of Securities Purchased at a Discount.

Section 40-18-11 - Inventory.

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 40-18-15.4 - Deductions for Certain Retrofitting or Upgrades to Homes - Residence in Alabama Insurance Underwriting Association Zone.

Section 40-18-15.5 - Deductions for Certain Retrofitting or Upgrades to Homes - Residence in Alabama.

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 40-18-15.8 - (Effective Until December 31, 2025) Deductions for Contributions to Qualifying Alabama Achieving a Better Life Experience Savings Accounts.

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 40-18-19.2 - Exemption of Certain Death Benefit Payments for Peace Officer or Fireman Killed in Line of Duty.

Section 40-18-20 - Exemptions - Military Retirement Benefits.

Section 40-18-21 - Credits for Taxes Paid on Income From Sources Outside the State and for Job Development Fees.

Section 40-18-21.1 - Annual Report of Credits Claimed for Taxes Paid to Foreign Countries.

Section 40-18-22 - Taxpayers Engaged in Multistate Business - Allocation and Apportionment of Deductions and Exemptions.

Section 40-18-23 - Taxpayers Engaged in Multistate Business - Option of Certain Taxpayers to Report and Pay Tax on Basis of Percentage of Volume.

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 40-18-24.3 - Taxation on Distributive Share of Interest, Dividends, etc., of Nonresident Member of Qualified Investment Partnership.

Section 40-18-24.4 - Alabama Electing Pass — Through Entity Tax Act.

Section 40-18-24.5 - Refundable Credit for Certain Owners, Members, Partners, or Shareholders of Electing Pass-Through Entities.

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 40-18-31.1 - Election for Foreign Corporations to Classify Dividend Income From Certain Subsidiaries as Business or Nonbusiness Income.

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 40-18-35.2 - Deductions From Federal Taxable for Amounts Included in Income Under 26 u.s.c. § 951a, Etc.

Section 40-18-35.3 - Deductions From Federal Taxable for Amounts Included in Income Under 26 u.s.c. § 118(b)(2).

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 40-18-40 - Tax to Be Reported on Forms; Department May Assess Additional Tax Penalty or Interest.

Section 40-18-41 - Amortization of Ad Valorem Tax.

Section 40-18-42 - Time and Methods of Payment of Tax.

Section 40-18-42.1 - Revised Due Dates for Payments of Income Tax or Financial Institution Excise Tax.

Section 40-18-44 - Installment Method.

Section 40-18-50 - Penalty for Failure to Make Return Within Time Specified.

Section 40-18-51 - Applicability of Lien Provisions; Disposition of Collections; Collection Prior to Delinquency.

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 40-18-56 - Furnishing Sworn Statement of Annual Return of Income to Department; Penalties for Failure to Comply; Limitations on Inspection of Taxpayer's Records.

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.

Section 40-18-61 - Restaurant Revitalization Grant Monies.