Code of Alabama
Title 40 - Revenue and Taxation.
Chapter 18 - Income Taxes.

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,...

Section 40-18-5 - Tax on Individuals. - The tax levied and imposed by Section 40-18-2 shall be...

Section 40-18-6 - Gain or Loss - Basis of Property; Adjusted Basis. - (a) Basis (unadjusted) of property. The basis of property shall...

Section 40-18-6.1 - Gain or Loss — Special Rules for Capital Gains Invested in Opportunity Zones. - (a) The provisions in 26 U.S.C. § 1400Z-2 shall be...

Section 40-18-7 - Gain or Loss - Determination of Amount. - (a) Computation of gain or loss. Except as hereinafter provided...

Section 40-18-8 - Gain or Loss - Recognition. - (a) General rule. Except as provided in this section, upon...

Section 40-18-8.1 - Gain or Loss — Recognition of Gains Invested in Opportunity Zones. - (a) A qualified employee's gain shall not be recognized upon...

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...

Section 40-18-11 - Inventory. - Whenever in the opinion of the Department of Revenue the...

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 - Repealed by Act 98–502, § 2.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...

Section 40-18-14 - Adjusted Gross Income of Individuals. - The term "gross income" as used herein: (1) Includes gains,...

Section 40-18-14.1 - Deferred Compensation Plans. - Notwithstanding any other laws, all deferred compensation plans for public...

Section 40-18-14.2 - Adjusted Gross Income. - (a) The term "adjusted gross income," as used in this...

Section 40-18-14.3 - Gross Income - Discount and Interest. - Gross income shall include original issue discount determined in accordance...

Section 40-18-15 - Deductions for Individuals Generally. - THIS SECTION WAS AMENDED BY ACT 2022-297 IN THE 2022...

Section 40-18-15.1 - Net Income Taxable Income Defined - Generally. - For purposes of this chapter, the term "taxable income" or...

Section 40-18-15.2 - Net Operating Loss. - Individuals may calculate a net operating loss from a trade...

Section 40-18-15.3 - Deductions for Health Insurance Premiums. - (a) As used in this section, the following terms shall...

Section 40-18-15.4 - Deductions for Certain Retrofitting or Upgrades to Homes - Residence in Alabama Insurance Underwriting Association Zone. - (a) An individual taxpayer, whose legal residence is located in...

Section 40-18-15.5 - Deductions for Certain Retrofitting or Upgrades to Homes - Residence in Alabama. - (a) Any individual taxpayer, whose legal residence is located in...

Section 40-18-15.6 - Deductions for Contributions Made to Health Savings Accounts. - (a) For the purposes of this section, health savings account...

Section 40-18-15.7 - Optional Increased Standard Deduction for Qualified Persons. - (a) A person qualifying for the optional increased standard deduction...

Section 40-18-15.8 - (Effective Until December 31, 2025) Deductions for Contributions to Qualifying Alabama Achieving a Better Life Experience Savings Accounts. - (a) An individual taxpayer shall be allowed a deduction from...

Section 40-18-16 - Depreciation. - (a) Basis for depreciation. The basis upon which exhaustion, wear...

Section 40-18-17 - Items Not Deductible. - In computing net income, no deduction shall in any case...

Section 40-18-18 - Amortization of War or Emergency Facilities. - Repealed by Act 98-502, § 2.

Section 40-18-19 - Exemptions - Generally. - THIS SECTION WAS AMENDED BY ACT 2022-294 IN THE 2022...

Section 40-18-19.1 - Exemptions for Severance, Unemployment Compensation, Etc. - (a) Effective for the 1997 state income tax year and...

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...

Section 40-18-20 - Exemptions - Military Retirement Benefits. - (a) The first $4,750 retirement or compensation received as retirement...

Section 40-18-21 - Credits for Taxes Paid on Income From Sources Outside the State and for Job Development Fees. - (a)(1) For the purpose of ascertaining the income tax due...

Section 40-18-21.1 - Annual Report of Credits Claimed for Taxes Paid to Foreign Countries. - The Department of Revenue shall report annually to the Legislature...

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...

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...

Section 40-18-24 - Taxation of Subchapter K Entity. - (a) The amount of income, deduction, gain, loss, or credit...

Section 40-18-24.1 - Composite Return and Payment by Nonresident Owner of Subchapter K Entity. - Repealed by Act 2009-144, p. 268, §12, effective January 1,...

Section 40-18-24.2 - Taxation of Pass-Through Entities. - (a) For purposes of this section and Section 40-18-24.3, the...

Section 40-18-24.3 - Taxation on Distributive Share of Interest, Dividends, etc., of Nonresident Member of Qualified Investment Partnership. - (a) Notwithstanding any other provision of this chapter to the...

Section 40-18-24.4 - Alabama Electing Pass — Through Entity Tax Act. - (a) This section shall be known and may be cited...

Section 40-18-24.5 - Refundable Credit for Certain Owners, Members, Partners, or Shareholders of Electing Pass-Through Entities. - (a) Notwithstanding any other provision of Chapters 16 and 18...

Section 40-18-25 - Estates and Trusts. - (a) For purposes of this chapter, the income and deductions,...

Section 40-18-25.1 - Estates and Trusts - Exemptions. - (a) Trusts shall be exempt from the tax imposed by...

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...

Section 40-18-26 - Information From Source of Income. - Every resident individual, corporation, association, or agent shall make a...

Section 40-18-27 - Individual Taxpayer's Returns; Liability of Innocent Spouse. - (a) Every taxpayer having gross income before the deductions allowed...

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...

Section 40-18-29 - Fiduciary Returns. - (a) Every fiduciary, except receivers appointed by authority of law...

Section 40-18-30 - Return When Accounting Period Changes. - (a) Taxpayer filing separate returns. If a taxpayer, with the...

Section 40-18-31 - Corporate Income Tax - Generally. - (a) A corporation subject to the tax imposed by Section...

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 40-18-31.2 - Factor Presence Nexus Standard for Business Activity. - (a)(1) Individuals who are residents or domiciliaries of this state...

Section 40-18-32 - Corporate Income Tax - Exemptions. - With the exception of unrelated business taxable income determined in...

Section 40-18-33 - Corporate Income Tax - Taxable Income. - In the case of a corporation subject to the tax...

Section 40-18-34 - Additions Required by Corporations. - The following items shall be added to federal taxable income...

Section 40-18-35 - Deductions Allowed to Corporations. - (a) The following items shall be deducted from federal taxable...

Section 40-18-35.1 - Carry Forward of Net Operating Losses. - In computing the taxable income of corporations subject to income...

Section 40-18-35.2 - Deductions From Federal Taxable for Amounts Included in Income Under 26 u.s.c. § 951a, Etc. - All amounts included in income under 26 U.S.C. § 951A...

Section 40-18-35.3 - Deductions From Federal Taxable for Amounts Included in Income Under 26 u.s.c. § 118(b)(2). - The amount of any contribution by the State of Alabama...

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...

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...

Section 40-18-39.1 - Business Interest Expense Deduction Limitations. - (a) For a tax year in which the business interest...

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...

Section 40-18-41 - Amortization of Ad Valorem Tax. - Any surplus remaining from the proceeds of the tax imposed...

Section 40-18-42 - Time and Methods of Payment of Tax. - (a) Time of payment for individuals. In the case of...

Section 40-18-42.1 - Revised Due Dates for Payments of Income Tax or Financial Institution Excise Tax. - (a) This section shall be known and may be cited...

Section 40-18-44 - Installment Method. - Income arising from an installment sale (including the sale by...

Section 40-18-50 - Penalty for Failure to Make Return Within Time Specified. - Any person or corporation, joint stock company or association liable...

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...

Section 40-18-53 - Inspection of Returns by Federal or Foreign State Agents. - All income tax returns filed under this chapter, or copies...

Section 40-18-54 - Supervision of Assessment and Collection. - The assessment and collection of the income taxes imposed by...

Section 40-18-55 - Statement to Be Furnished by Taxpayer. - Every corporation, joint stock company, or association organized under the...

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...

Section 40-18-57 - Rules to Be Promulgated by Department of Revenue. - The Department of Revenue shall from time to time, as...

Section 40-18-58 - Appropriation. - There is hereby appropriated out of the proceeds of the...

Section 40-18-59 - Additional Appropriations. - In addition to all other appropriations heretofore or hereinafter made,...

Section 40-18-60 - Covid-19 Recovery Capital Credit Protection Act of 2021. - This section shall be known and may be cited as...

Section 40-18-61 - Restaurant Revitalization Grant Monies. - For tax years ending after March 11, 2021, the date...

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...

Section 40-18-71 - Withholding Tax. - (a) Every employer, as defined under the laws of the...

Section 40-18-72 - Included and Excluded Wages. - If the remuneration paid by an employer to an employee...

Section 40-18-73 - Withholding Certificates. - (a) Every employee, on or before the date of commencement...

Section 40-18-73.1 - Provisional Employers. - (a) This section shall be known and may be cited...

Section 40-18-74 - Payment of Amounts Withheld. - (a) Every employer required to deduct and withhold tax under...

Section 40-18-75 - Statement to Be Furnished Employee. - (a) Every person required to deduct and withhold from an...

Section 40-18-76 - Liability for Tax Withheld. - An employer shall be liable for the payment of the...

Section 40-18-77 - Refund to Employer. - (a) Where there has been an overpayment of tax under...

Section 40-18-78 - Credit for Tax Withheld. - The amount deducted and withheld as tax under Section 40-18-71...

Section 40-18-79 - Overpayment of Tax. - Where there has been an overpayment of any tax imposed...

Section 40-18-80 - (Effective for Tax Years Beginning After December 31, 2009) Payment of Estimated Tax by Individuals. - (a) Individuals. Individuals shall pay estimated income tax in accordance...

Section 40-18-80.1 - (Effective for Tax Years Beginning After December 31, 2009) Payment of Estimated Tax by Corporations. - (a) Corporations. Corporations shall pay estimated income tax in accordance...

Section 40-18-81 - Optional Short Form Tax. - Any individual may elect to file a "short form" return...

Section 40-18-82 - (Repealed Effective for Tax Years Beginning After December 31, 2009) Estimated Tax. - Repealed by Act 2010-568, effective with tax years beginning December...

Section 40-18-83 - (Repealed Effective for Tax Years Beginning After December 31, 2009) Payment of Estimated Tax. - Repealed by Act 2010-568, effective with tax years beginning December...

Section 40-18-83.1 - (Repealed Effective for Tax Years Beginning After December 31, 2009) Declaration and Payment of Estimated Tax by Corporations. - Repealed by Act 2010-568, effective with tax years beginning December...

Section 40-18-84 - Adjusted Gross Income. - Repealed by Act 98-502, §2.

Section 40-18-85 - (Repealed Effective for Tax Years Beginning After December 31, 2009) Estates and Fiduciaries. - Repealed by Act 2010-568, effective with tax years beginning December...

Section 40-18-86 - Sale or Transfer of Real Property and Associated Tangible Property by Nonresidents. - (a) As used in this section, the term nonresident of...

Division 2 - Wage Winnings Withholding Tax.

Section 40-18-90 - Definitions. - As used in this division, the following terms shall have...

Section 40-18-91 - Wager Proceeds; Withholding of State Income Tax. - (a) Each person making any payment of proceeds from a...

Article 3 - Setoff Debt Collection.

Section 40-18-100 - Definitions. - For the purposes of this article, the following terms shall...

Section 40-18-101 - Remedy Additional. - The collection remedy authorized by this article is in addition...

Section 40-18-102 - Collection of Debts by Setoff. - (a) A claimant agency may submit debts in excess of...

Section 40-18-103 - Procedure for Setoff and Notification of Taxpayer. - (a) A county or municipality may submit a debt of...

Section 40-18-104 - Hearing Procedure. - (a) When the claimant agency receives a protest or application...

Section 40-18-105 - Finalization and Notice of Setoff. - (a) Upon final determination of the amount of the debt...

Section 40-18-106 - Priority. - The department has priority over every claimant agency for collection...

Section 40-18-107 - Commissioner May Provide Claimant Agency Information; Confidentiality of Information. - (a) Notwithstanding any confidentiality statute, the Commissioner of Revenue may...

Section 40-18-108 - Effect of Setoff on Refund. - When the setoff authorized by this article is exercised, the...

Section 40-18-109 - Issuance by State Treasurer of Separate Warrants. - In those cases where the amount claimed to be due...

Section 40-18-110 - Payment of Fee. - (a) The fee charged to the department by the United...

Article 3A

Section 40-18-111 - Income Tax Credit for Storm Shelter Construction. - (a) As used in this article, the following terms shall...

Article 4 - Solar Energy Tax Credits.

Section 40-18-120 - Active Solar Energy Tax Credits. - Repealed by Act 98-502, §2.

Section 40-18-121 - Passive Solar Energy Tax Credits. - Repealed by Act 98–502, §2.

Article 4A - Rural Physician Tax Credit.

Section 40-18-130 - Legislative Intent. - It is the intent of the Legislature to institute programs...

Section 40-18-131 - Definitions. - For the purposes of this article, the following words have...

Section 40-18-132 - Physicians Qualifying for Credit; Time Limit; Promulgation of Rules. - Beginning with the 1994 tax year, a person qualifying as...

Article 4B - Credits Against State Income Tax Liability.

Section 40-18-135 - Definitions. - The following definitions apply to this article: (1) APPROVED BASIC...

Section 40-18-136 - Credit to Employer. - Beginning with tax year 1993, a tax credit of 20...

Section 40-18-137 - Credit Limited to Income Tax Liability. - The tax credit available to an employer pursuant to this...

Section 40-18-138 - Rules Regarding Procedures for Approving Education Programs. - The Alabama Department of Education shall promulgate and adopt rules...

Section 40-18-139 - Reimbursement to Employer. - No tax credit shall be granted pursuant to this article...

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...

Section 40-18-141 - Arts Development Fund - Established; Appropriation; Distribution of Funds. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-142 - Alabama Nongame Wildlife Program - Legislative Declarations and Intent. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-143 - Alabama Nongame Wildlife Program - Contribution Designation Form. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-144 - Alabama Nongame Wildlife Program - Appropriation. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-145 - Alabama Nongame Wildlife Program - Implementation; No Rights of Department of Conservation and Natural Resources. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-146 - Political Party Defined; Designated Contribution by Taxpayers Filing State Income Tax Return; Disposition of Contributions. - (a) For purposes of this article, the term "political party"...

Section 40-18-147 - Alabama Aging Program. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-148 - Alabama Veterans' Home Program; Legislative Intent; Designation Form; Appropriation. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-149 - Alabama Indian Affairs Commission - Contribution Designation. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-150 - Foster Care Trust Fund - Contribution Designation. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-151 - Alliance for the Mentally Ill of Alabama and Mental Health Consumers of Alabama - Contribution Designation. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-152 - Alabama Breast and Cervical Cancer Research - Program Contribution Designation. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-153 - Alabama 4-H Club Foundation, Incorporated. - Repealed by Act 2006-503, p. 1145, §2, effective for tax...

Section 40-18-154 - Alabama Military Support Foundation, Inc. - Contribution Designation. - (a) Each Alabama state individual income tax return form for...

Section 40-18-155 - Alabama Firefighters Annuity and Benefit Fund. - (a) Each Alabama state individual income tax return form for...

Section 40-18-156 - Alabama Veterinary Medical Foundation for the Spay-Neuter Program. - (a) Each Alabama state individual income tax return form for...

Section 40-18-157 - Alabama Association of Rescue Squads. - (a) A minimum annual contribution of two dollars ($2) may...

Article 6 - Alabama S Corporations.

Section 40-18-160 - General Provisions. - (a) An Alabama S corporation shall not be subject to...

Section 40-18-161 - Determination of Taxable Income. - (a) The taxable income of an Alabama S corporation shall...

Section 40-18-162 - Determination of Tax of Shareholder. - (a) In determining the tax of a shareholder for the...

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...

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...

Section 40-18-165 - Distribution of Property Generally. - (a) A distribution of property made by an Alabama S...

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...

Section 40-18-167 - Applicability of Chapter. - Except to the extent inconsistent with this article, the rules...

Section 40-18-168 - "Carryforward" and "Carryback" Provisions. - No carryforward and no carryback arising for a taxable year...

Section 40-18-169 - Adjustments to Earnings and Profits. - (a) Except as provided in subsections (b) and (c) of...

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...

Section 40-18-171 - Determination of Shareholder's Pro Rata Share; "Affected Shareholders" Defined. - (a) For purposes of this article, except as provided in...

Section 40-18-172 - "Post-Termination Transition Period" and "Determination" Defined. - (a) For purposes of this article, the term "post-termination transition...

Section 40-18-173 - Interpretation of Article Generally. - Due consideration shall be given in the interpretation of this...

Section 40-18-174 - Tax Imposed on Certain Built-in Gains. - (a) If for any taxable year beginning in the recognition...

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...

Section 40-18-176 - Nonresident Shareholder Composite Returns. - (a) The Department of Revenue shall permit an Alabama S...

Article 7 - Tax Credits for Projects of New Businesses and Business Expansions.

Section 40-18-190 - Definitions. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-191 - Filing With Department Written Statement of Intent to Claim Credit. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-192 - Effect of Compliance With Requirements; Agreements Specifying Method by Which Income Generated and Allocation of Credit. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-193 - Qualifications for Capital Credits. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-193.1 - Applicability to Gaming Facilities. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-194 - Entities Allowed Capital Credit. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-195 - Capital Credit Not to Exceed Capital Costs of Project. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-195.1 - Capital Credits and Abatements Under 2007 North American Classification System Industry Group 2121. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-196 - Department to Report Annually. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-197 - Department to Adopt Regulations and to Audit Companies. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-198 - Officer to File Affidavit With Department. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-199 - State Industrial Development Authority Not to Grant Credits Except for Certain Entities. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-200 - Entities Approved by State Industrial Development Authority Prior to January 16, 1995, May Elect to Receive Credit Under Article. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-201 - Companies to Maintain Records; Regulations Concerning Determination of Income. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-202 - Availability of Capital Credits for New Projects After December 31, 1998. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-202.1 - Availability of Capital Credits After December 31, 2018. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-203 - Provisions to Govern Administration of Article. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Article 7A - Tariff Credit Act of 2011.

Section 40-18-205 - Short Title. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-206 - Definitions. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-207 - Statement of Intent to File for Tariff Card. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-208 - Recommendation and Approval; Notice of Tariff Credit. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-209 - Availability of Tariff Credit on Pass-Through Basis. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-210 - Relation to Article 7 of This Chapter. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-211 - Filing Requirements. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-212 - Annual Report. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-213 - Rules and Regulations; Fees; Audit. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-214 - Availability of Tariff Credits; Tariff Costs Treated as Income; Minimum Employment Level. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-215 - Implementation and Administration of Article. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

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,...

Section 40-18-221 - Department to Promulgate and Issue Rules and Regulations. - The Department of Revenue shall promulgate and issue rules and...

Article 9 - Capital Credits for Qualified Products.

Section 40-18-240 - Definitions. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-241 - Written Statement of Intent to Claim Credit. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-242 - Written Agreements With Department. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-243 - Availability of Credit on Pass-Through Basis. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-244 - Credits Not to Exceed Costs. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-245 - Report to Legislature. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-246 - Regulations; Periodic Audits. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-247 - Affidavit of Compliance. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-248 - Maintenance of Records; Promulgation of Regulations. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-249 - Availability of Credit After December 31, 2005. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Section 40-18-250 - Administration of Article. - REPEALED IN THE 2015 REGULAR SESSION BY ACT 2015-27 EFFECTIVE...

Article 10 - Reemployment Act of 2010.

Section 40-18-270 - Short Title. - This article shall be known as the Reemployment Act of...

Section 40-18-271 - Deduction for Businesses That Hire Certain Unemployed Persons. - (a) An Alabama income tax deduction is established for employers...

Section 40-18-272 - Adoption of Rules. - The Department of Revenue shall have the authority to adopt...

Article 11 - Full Employment Act of 2011.

Section 40-18-290 - Short Title. - This article may be cited as the Full Employment Act...

Section 40-18-291 - Definitions. - For purposes of this article, a small business is defined...

Section 40-18-292 - Legislative Findings. - The Legislature finds and determines, in accordance with its goal,...

Section 40-18-293 - Alabama Income and Financial Institution Excise Tax Credit. - (a) An Alabama income and financial institution excise tax credit...

Article 12 - Catastrophe Savings Accout.

Section 40-18-310 - Definitions. - As used in this article, the following terms shall have...

Section 40-18-311 - Income Tax Deduction; Contributions to Catastrophe Savings Account. - (a) An individual taxpayer is allowed a deduction against income...

Section 40-18-312 - Distributions From Catastrophe Savings Account; Additional Tax. - (a) A distribution from a catastrophe savings account must be...

Section 40-18-313 - Promulgation of Rules. - The Department of Revenue may promulgate rules necessary to implement...

Article 13 - "Heroes for Hire" Tax Credit Act of 2012.

Section 40-18-320 - Short Title. - This article shall be known and may be cited as...

Section 40-18-320.1 - Definitions. - As used in this article, the following terms have the...

Section 40-18-321 - Availability of Tax Credit. - In addition to the tax credit allowed for in the...

Section 40-18-322 - Eligibility for Tax Credit. - For all tax years beginning on or after January 1,...

Section 40-18-323 - Expenses Associated With a Start-Up Business. - (a) In addition to the definition in Section 40-18-321, EXPENSE...

Section 40-18-324 - Duties and Procedures. - (a) The Department of Labor, in coordination with the Department...

Article 14 - Irrigation Equipment Tax Credit.

Section 40-18-340 - Definitions. - As used in this article, the following terms shall have...

Section 40-18-341 - Expense of Qualified Irrigation Equipment. - Notwithstanding any other provision of law to the contrary, for...

Section 40-18-342 - Tax Credit for Equipment and Conversion Costs. - (a)(1) Subject to subdivision (2), for all tax years beginning...

Section 40-18-343 - Applicability of Environmental and Water Laws and Regulations. - Nothing in this article changes the applicability of existing environmental...

Section 40-18-344 - Rules and Regulations. - The Department of Revenue shall promulgate rules and regulations for...

Article 15 - Private Intrastate Adoption or Adoption of a Qualified Foster Child.

Section 40-18-361 - Tax Credit for Certain Adoptions. - THIS SECTION WAS AMENDED BY ACT 2022-299 IN THE 2022...

Section 40-18-362 - Postsecondary Education Assistance. - Repealed by Act 2015-121 effective October 15, 2015.

Section 40-18-363 - Rulemaking Authority. - The commissioner shall be authorized to promulgate any rules necessary...

Article 16 - Alabama Jobs Act.

Section 40-18-370 - Short Title; Legislative Findings; Definitions. - (a) This article shall be known and may be cited...

Section 40-18-370.1 - Legislative Findings as to Enhancement of Alabama Jobs Act. - The Legislature finds as follows: (a) While Alabama's incentive programs...

Section 40-18-371 - Requirements for Receipt of Incentives. - For a company to receive one or both of the...

Section 40-18-372 - Qualifying Projects - Activities and Standards. - A qualifying project must be found by the Secretary of...

Section 40-18-373 - Approved Companies. - In order for a company to be an approved company,...

Section 40-18-374 - Claiming of Incentives; Project Agreement; Amounts and Durations of Incentives. - (a) An incentivized company may claim either or both of...

Section 40-18-375 - Jobs Credit Against Utility Taxes; Realization of Benefits; Regulations. - (a)(1) If provided for in the project agreement and in...

Section 40-18-376 - Investment Credit; Realization Methods; Rulemaking Authority. - (a) If provided for in the project agreement, the incentivized...

Section 40-18-376.1 - Projects in Targeted or Jumpstart Counties. - (a) As used in this section, the following terms shall...

Section 40-18-376.2 - Additional Jobs Credit for Employment of Veterans. - (a) The provisions in this section shall apply to the...

Section 40-18-376.3 - Qualifying Projects by Technology Companies. - (a)(1) This section shall be applicable to a technology company...

Section 40-18-376.4 - Qualifying Projects by Underrepresented Companies. - (a) This section shall be applicable to an underrepresented company,...

Section 40-18-377 - Project Agreements Forwarded to Department of Revenue; Incentives Not Deemed Securities. - (a) After its execution, the Department of Commerce shall forward...

Section 40-18-378 - Verification of Employment Numbers; Audits; Return of Unearned Credit Amounts; Liability of Incentivized Companies. - (a) The Department of Labor shall periodically verify the actual...

Section 40-18-379 - Joint Legislative Advisory Committee on Economic Incentives. - (a) There is hereby created a permanent Joint Legislative Advisory...

Section 40-18-380 - Implementation of Article. - (a) The Departments of Commerce, Labor, Insurance, Revenue, and Finance...

Section 40-18-381 - Construction of Article. - (a) Nothing in this article shall be construed to constitute...

Section 40-18-382 - Continuation or Reinstatement of Incentives. - The incentives authorized by this article shall not be available...

Section 40-18-383 - Maximum Balance of Outstanding Incentives; Availability of Incentives to Existing Projects. - (a) At no time prior to the calendar year ending...

Section 40-18-384 - Special Industrial or Research Enterprises; Amounts and Durations of Incentives; Fees for Amendments to Project Agreements. - (a) Both of the following shall be considered industrial or...

Section 40-18-385 - Implementation and Administration of the Alabama Incentives Modernization Act. - The departments of Economic and Community Affairs, Revenue, Commerce, and...

Section 40-18-386 - Reductions of Distribution for Education Trust Fund and General Fund. - Notwithstanding the provisions of Section 40-18-376(d)(2), to the extent the...

Article 17 - Alabama Small Business and Agribusiness Jobs Act.

Section 40-18-390 - Short Title. - This article shall be known and may be cited as...

Section 40-18-391 - Definitions. - For the purpose of this article, the following words and...

Section 40-18-392 - (Tax Credit Expires January 1, 2019, per Subsection (G)). Qualifications for and Applicability of Tax Credit. - (a) An Alabama small business tax credit is hereby allowed...

Section 40-18-393 - Rulemaking Authority. - The department may adopt rules consistent with this article as...

Section 40-18-394 - Promotion of Tax Credits for Small Businesses and Independently Owned Business Entities. - By December 31, 2016, the Department of Revenue shall create...

Article 18 - Tax Credit for Use of Port Facilities.

Section 40-18-400 - Definitions. - For the purposes of this article, the following words and...

Section 40-18-401 - Applications; Construction of Article. - (a) The port credit provided for in Section 40-18-403 is...

Section 40-18-402 - Renewal of Alabama Commission. - (a) There is hereby created the Renewal of Alabama Commission....

Section 40-18-403 - Port Credits. - (a) If approved by the commission, a port credit is...

Article 19 - Growing Alabama Credits.

Section 40-18-410 - (Per Section 40-18-416, This Section Is Repealed Following the Close of Fiscal Year 2020) Definitions. - THIS SECTION WAS REPEALED IN THE 2021 REGULAR SESSION BY...

Section 40-18-411 - (Per Section 40-18-416, This Section Is Repealed Following the Close of Fiscal Year 2020) Applications. - THIS SECTION WAS REPEALED IN THE 2021 REGULAR (a) (1)...

Section 40-18-412 - (Per Section 40-18-416, This Section Is Repealed Following the Close of Fiscal Year 2020) Approval of Applications; Agreements. - THIS SECTION WAS REPEALED IN THE 2021 REGULAR (a) Following...

Section 40-18-413 - (Per Section 40-18-416, This Section Is Repealed Following the Close of Fiscal Year 2020) Scope and Use of Growing Alabama Credits. - THIS SECTION WAS REPEALED IN THE 2021 REGULAR (a) A...

Section 40-18-414 - (Per Section 40-18-416, This Section Is Repealed Following the Close of Fiscal Year 2020) Site Preparation or Public Infrastructure Work; Reports. - THIS SECTION WAS REPEALED IN THE 2021 REGULAR (a) Upon...

Section 40-18-415 - (Per Section 40-18-416, This Section Is Repealed Following the Close of Fiscal Year 2020) Forms; Construction of Article; Rulemaking Authority. - THIS SECTION WAS REPEALED IN THE 2021 REGULAR (a) All...

Section 40-18-416 - (Per Section 40-18-416, This Section Is Repealed Following the Close of Fiscal Year 2020) Repeal of Article. - THIS SECTION WAS REPEALED IN THE 2021 REGULAR This article...

Article 19A - Growing Alabama Act

Section 40-18-417 - Short Title. - This article shall be known and may be cited as...

Section 40-18-417.1 - Definitions. - For the purposes of this article, the following words and...

Section 40-18-417.2 - Applications. - (a)(1) A local economic development organization which owns a site...

Section 40-18-417.3 - Approval of Applications; Agreements. - (a) Following a review, if the Department of Commerce should...

Section 40-18-417.4 - Scope and Use of Growing Alabama Credits. - (a) A taxpayer is allowed a Growing Alabama Credit to...

Section 40-18-417.5 - Site Preparation or Public Infrastructure Work; Reports. - (a) Upon receipt of funding provided by the tax credit...

Section 40-18-417.6 - Forms; Construction of Article; Rulemaking Authority. - (a) All filings and applications made with any department of...

Section 40-18-417.7 - Availability of Credits. - The Growing Alabama Credits provided in this article shall not...

Article 20 - Apprenticeship Tax Credit Act of 2016.

Section 40-18-420 - (Credit Expires After 2021 Tax Year Unless extended.) Short Title. - This article shall be known and may be cited as...

Section 40-18-421 - (Credit Expires After 2021 Tax Year Unless extended.) Definitions. - For the purposes of this article, the following terms shall...

Section 40-18-422 - (Credit Expires After 2025 Tax Year Unless extended.) Tax Credit for Eligible Employers of Apprentices. - (a) For tax years beginning on or after January 1,...

Section 40-18-423 - (Credit Expires After 2025 Tax Year Unless extended.) Rulemaking Authority; Annual Report. - (a) The Alabama Office of Apprenticeship, under the direction of...

Section 40-18-424 - (Credit Expires After 2025 Tax Year Unless extended.) Duration. - The tax credits allowed under this article shall be effective...

Article 21 - Alabama Taxpayer Protection and Assistance Act.

Section 40-18-440 - (Effective for Tax Returns Due on or After January 1, 2018) Short Title. - This article shall be known and may be cited as...

Section 40-18-441 - (Effective for Tax Returns Due on or After January 1, 2018) Purpose. - The Alabama Taxpayer Protection and Assistance Act is enacted to...

Section 40-18-442 - (Effective for Tax Returns Due on or After January 1, 2018) Definitions. - When used in this article, the following terms shall have...

Section 40-18-443 - (Effective for Tax Returns Due on or After January 1, 2018) Requirements of Taxpayers. - No person may provide tax preparation services for Alabama income...

Section 40-18-444 - (Effective for Tax Returns Due on or After January 1, 2018) Duties of the Department. - (a) For taxable years beginning on or after January 1,...

Section 40-18-445 - (Effective for Tax Returns Due on or After January 1, 2018) Enforcement. - (a) The department may investigate the actions of any income...

Section 40-18-446 - (Effective for Tax Returns Due on or After January 1, 2018) Rulemaking Authority. - The department shall adopt rules to assist with the implementation...

Article 22 - Alabama Taxpayer Stimulus Freedom Acts of 2021

Section 40-18-460 - Exclusion of Cares Act Relief Benefits, etc., From Alabama Individual Income Taxation and Deductions. - (a) Any tax credits or advance refund amounts received as...

Section 40-18-461 - Cancellation of Indebtedness Income Under Cares Act, etc., Excluded From Alabama Individual Income Taxation and Deductions. - (a) Any amount of cancellation of indebtedness income resulting from...

Section 40-18-462 - Amounts of Certain Loans and Grants Under Cares Act, etc., Excluded From Alabama Individual Income Taxation and Deductions. - (a) Any subsidy payment for covered loans as described in...

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Code of Alabama Title 40 - Revenue and Taxation. Chapter 18 - Income Taxes.

Code of Alabama
Title 40 - Revenue and Taxation.
Chapter 18 - Income Taxes.