This section shall be known and may be cited as the "COVID-19 Recovery Capital Credit Protection Act of 2021."
(b) For the purposes of this section the following terms shall have the assigned meanings:
(1) APPROVED PROJECT ENTITY. An entity that has filed a notice of intent with the department on or before January 1, 2016, and that has subsequently filed or will file a report of investment in project with the department to claim a capital credit under the Capital Credit Program.
(2) DEPARTMENT. The Alabama Department of Revenue.
(3) QUALIFYING PROJECT. A project that has been placed into service in calendar years 2019, 2020, or 2021.
(c)(1) The one-year period in which to satisfy the initial employment and wage requirements for an approved project entity shall be extended to a period not to exceed two years for any otherwise qualifying project placed into service in calendar years 2019, 2020, or 2021 that have been directly affected by the COVID-19 pandemic.
(2) An approved project entity's qualifying project, that fails to meet the annual employment and wage requirements for tax years beginning after December 31, 2019, but before January 1, 2022, will not be considered in the determination of disqualification from the capital credit program; provided that the COVID-19 pandemic is the primary cause of the disqualification.
(3) An approved project entity shall not be subject to certain forfeiture penalties imposed on qualifying projects that fail to maintain employment and wage requirements for any tax year ending before January 1, 2022. For tax years beginning on or after January 1, 2022, the applicable forfeiture penalty shall be equal to 100 percent of the capital credits claimed in the year immediately preceding the year in which the approved project entity fails to maintain the employment and wage requirements of this section. The forfeiture percentage shall be reduced to 20 percent for each successive prior year in the five-year forfeiture period.
(d) The department shall adopt rules for the implementation and administration of this section.
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.