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Income Tax Capital Credit (Alabama)

Eligibility 
Commercial
Construction
Industrial
Savings Category 
Fuel Cells
Photovoltaics
Program Info
State 
Alabama
Program Type 
Corporate Tax Incentive

The purpose of this law is to create jobs and to stimulate business and economic growth in the state by providing an income tax capital credit for approved projects. The Income Tax Capital Credit is a credit of five percent (5%) of the capital costs of a qualifying project offered by the Alabama Department of Revenue. The credits is applied to the Alabama income tax liability or financial institution excise tax generated by the project income, each year for 20 years. This credit cannot be carried forward or back (you use it or lose it), and cannot be used to generate a refund to the taxpayer. The capital credit is used only after all other deductions, losses, or credits permitted under Titles 40 and 41 of the Code of Alabama 1975. The credit will follow the income generated by the project and, therefore, will be allowed to "pass-through" entities such as: S corporations, partnerships, limited liability companies, etc.