Alabama Administrative Code

1. General Requirements for Approval and Participation. An ESP must do all of the following: a. Submit to the department any information required by the department for implementation of the program, including its address, contact information, and a summary of each program or serv…

1. Parents may direct payment from the ESA for any, or any combination of, the following qualifying educational expenses purchased from an ESP: a. Tuition and fees at a participating school. Includes enrollment and registration fees, student fees, activity fees, school fee, secur…

1. Education Savings Account Fund Availability. The full approved amount shall be available in the participating student's ESA for use on or after July 1 of the academic year. Participating student's ESAs that are approved after July 1 shall be funded based on program fund availa…

(Repealed 6/2/99). Authors: Verlon R. Frost, Jeff Taylor Statutory Authority: Code of Ala. 1975, § 40-18-10. History: Filed July 27, 1988. Amended: Filed March 4, 1997; effective April 8, 1997. Repealed: Filed April 28, 1999; effective June 2, 1999. Notes Ala. Admin. Code r. 810-…

Act 81-696 (now codified at § 40-18-100, et seq.) provides that debts owed the Alabama Commission on Higher Education and the Alabama Department of Human Services (formerly the Alabama Department of Pensions and Security) may be collected by setoff of an income tax refund of the …

When the production, purchase, or sale of merchandise is an income producing factor, inventories at the beginning and ending of each taxable year are necessary in order to correctly compute income. In these cases, inventories shall be taken, computed and used in accordance with t…

(1) In order to establish eligibility for the solar energy credit, the taxpayer shall submit a completed Application for Certificate of Eligibility, Schedule SCR-2, to Application Review Officer Alabama Solar Energy Center/UAH Huntsville, Alabama 35899 Submit the application as s…

(1) In order to establish eligibility for the solar energy credit the taxpayer shall submit a completed Application for Certificate of Eligibility, Schedule SCR-2, to Application Review Officer Alabama Solar Energy Center/UAH Huntsville, Alabama 35899 Submit the application as so…

(1) Taxable income shall be computed and a return shall be made for a period known as the "taxable year." The taxable year may be a calendar year, a fiscal year, an elected 52-53 week year, or an accounting period of less than twelve months resulting from a change in accounting p…

(1) Each taxpayer must maintain such accounting records as will clearly reflect his income for each accounting period, and must file his returns based on these records. (2) If the taxpayer does not maintain such accounting records, or if such records do not clearly reflect the in…

(1) For tax years beginning after December 31, 1998, a taxpayer making an election to file an Alabama consolidated return, as provided in § 40-18-39, Code of Ala. 1975, must use the same method of accounting as employed for federal income tax purposes. (2) For tax years beginning…

(1) For tax years beginning before January 1, 1990, a taxpayer desiring to change his method of accounting should request permission from the Department of Revenue to make the change. Applications for such change should set forth clearly the nature of the business, the method of …

(1) SCOPE. This regulation sets forth definitions of terms used in regulation 810-3-135-.02 which establishes the computation and limitation of the credit and procedures to be followed. (2) DEFINITIONS. The following terms have the meaning ascribed to them for the purposes of imp…

(1) SCOPE. This regulation applies to the computation and limitation of the credit available in the Basic Skills Education Program. (2) DEFINITIONS. Terms defined in regulation 810-3-135-.01 are incorporated herein by reference for purposes of this regulation, unless the context …

(1) SCOPE. The department promulgates these rules to implement Act 95-239 and clarify the procedures used by a corporation to establish: (a) the definitions of terms and procedures used to calculate the credit; and, (b) the determination of when the credit is available; and, (c) …

1. Purpose. This rule sets forth guidelines and procedures for administering the Volunteer Emergency Responders Credit as provided in Chapter 18, Article 23 of Title 40, Code of Ala. 1975. 2. Definitions. For purposes of this rule, all terms except the terms explicitly provided b…

(1) Purpose. This rule sets forth guidelines and procedures to be used by the department in the administration of the Employer Tax Credit as codified in Article 28 of Chapter 18 of Title 40, Code of Ala. 1975. (2) Definitions. (a) For purposes of this rule, all terms except the t…

(1) Purpose. This rule sets forth guidelines and procedures to be used by the department in the administration of the Facility Tax Credit as codified in Article 28 of Chapter 18 of Title 40, Code of Ala. 1975. (2) Definitions. For purposes of this rule, all terms except the terms…

(1) This rule sets forth guidelines and procedures to be used by the Department of Revenue in the administration of the Historic Rehabilitation Tax Credit of 2013, as codified in Article 1 of Chapter 9F of Title 40 of the Code of Ala. 1975, which provides for a tax credit under C…

(1) This rule sets forth guidelines and procedures to be used by the Department of Revenue in the administration of the Historic Rehabilitation Tax Credit of 2013, as codified in Article 1 of Chapter 9F of Title 40, Code of Ala. 1975, which provides for a tax credit under Chapter…

(1) This rule sets forth guidelines and procedures to be used by the Department of Revenue in the administration of the Historic Rehabilitation Tax Credit of 2013, as codified in Article 1 of Chapter 9F of Title 40, Code of Ala. 1975, which provides for a tax credit under Chapter…

(1) This rule sets forth guidelines and procedures to be used by the Department of Revenue in the administration of the Historic Rehabilitation Tax Credit of 2017, as codified in Article 2 of Chapter 9F of Title 40 of the Code of Ala. 1975, which provides for a tax credit under C…

(1) This rule sets forth guidelines and procedures to be used by the department in the administration of the Historic Rehabilitation Tax Credit of 2017, as codified in Article 2 of Chapter 9F of Title 40, Code of Ala. 1975, which provides for a tax credit under Chapter 18 of Titl…

(1) This rule sets forth guidelines and procedures to be used by the Department of Revenue in the administration of the Historic Rehabilitation Tax Credit of 2017, as codified in Article 2 of Chapter 9F of Title 40, Code of Ala. 1975, which provides for a tax credit under Chapter…

(1) The term "gross income" means all wealth flowing to the taxpayer from whatever source derived other than as a return of his capital and other than those items exempted by Section 40-18-14(2), Code of Ala. 1975. Gross income includes income realized in any form, whether in mon…

(1) Items which are excluded from gross income are listed in § 40-18-14(3), Code of Ala. 1975, as follows: (a) Amounts received under life insurance policies and contracts paid by reason of the death of the insured, in accordance with 26 U.S.C. § 101. (b) Amounts received, other …

(1) A taxpayer is engaged in the business of farming if he cultivates, operates, or manages a farm for gain or profit, either as owner or tenant. A taxpayer who receives a rental (either in cash or in kind) which is based upon farm production is engaged in the business of farming…

(1) If an amount which was properly allowed as a deduction in a prior year is subsequently recovered or refunded, the amount recovered or refunded must be included in income for the year of recovery to the extent that a tax benefit resulted from the deduction. (2) A tax benefit i…

(1) (a) The gross income of a nonresident includes compensation for personal services only to the extent that the services were rendered in this State. (b) Compensation for personal services rendered by a nonresident outside this State and not connected with the management or con…

(1) Bonus or other post-employment payments made by an employer to his employee in the military service are considered to be compensation for services and includable in gross income, where the plan and agreement are that the employee is to return to his position when discharged f…

(Repealed). Authors: Royce Lader, Ann F. Winborne Notes Ala. Admin. Code r. 810-3-14-.07 Amended: June 17, 1988; filed July 27, 1988. Filed May 15, 1992. Repealed: Filed October 12, 2001; effective November 16, 2001. Statutory Authority: Code of Ala. 1975, § 40-18-14.

(Repealed). Authors: Royce Lader, Ann F. Winborne Notes Ala. Admin. Code r. 810-3-14-.08 Amended: June 17, 1988; filed July 27, 1988. Filed July 22, 1992; October 30, 1992. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed: Filed October 12, 2001; effective …

(Repealed). Authors: Rebecca S. Whisenant, Amanda G. Scott, CPA Notes Ala. Admin. Code r. 810-3-14-.09 Amended: June 17, 1988; filed July 27, 1988. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed: Filed May 3, 2000; effective June 7, 2000. Statutory Author…

(Repealed). Authors: Roy Wiggins, Amanda G. Scott, CPA, Ann F. Winborne, CPA Notes Ala. Admin. Code r. 810-3-14-.10 Amended: June 17, 1988; filed July 27, 1988. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed: Filed May 3, 2000; effective June 7, 2000. Sta…

Notes Ala. Admin. Code r. 810-3-14-.11 New Rule: Filed February 20, 1998; Effective March 27, 1998. Amended: Filed May 3, 2000; effective June 7, 2000. Repealed: Filed February 5, 2009; effective March 12, 2009. Authors: Edward F. Cutter, CPA; Richard H. Henninger, Jr.; Judy A. R…

(1) For tax years beginning after December 31, 1997, no deduction shall be allowed for any losses, expenses, or interest deferred or disallowed pursuant to 26 U.S.C. § 267. For interpretation of federal statutes adopted by the Alabama Legislature, see Rule 810-3-1.1 -.01, Operati…

(1) Business expenses deductible from gross income include the ordinary and necessary expenses paid or accrued during the taxable year, directly connected with or pertaining to the taxpayer's trade or business, as determined in accordance with 26 U.S.C. § 162. (2) The provisions …

(1) Effective for all taxable years beginning after December 31, 1997, interest paid or accrued within the taxable year on indebtedness shall be limited to the amount allowable as an interest deduction for federal income tax purposes in the corresponding tax year or period pursua…

(1) The following taxes imposed by the United States or any possession of the United States are deductible by the taxable entity upon whom the taxes are imposed: (a) Income taxes (b) Federal Insurance Contribution Act (FICA) taxes (c) Self-employment taxes (d) Estate and gift tax…

(1) Effective for all taxable years beginning after December 31, 1997, there shall be allowed as a depreciation deduction a reasonable allowance for the exhaustion, wear and tear (including a reasonable allowance for obsolescence) of property used in a trade or business, or of pr…

(1) There shall be allowed as a deduction in computing taxable income in the case of mines, oil and gas wells, other natural deposits, and timber, a reasonable allowance for depletion. (a) Depletion allowance for standing timber shall be computed solely on the adjusted basis of t…

(1) The following losses sustained during the taxable year and not compensated for by insurance or otherwise are deductible by individuals: (a) Losses incurred in a trade or business, in accordance with 26 U.S.C. § 165(c)(1). (b) Losses incurred in any transaction entered into fo…

(Repealed 1/18/00). Authors: Ann F. Winborne, CPA, Roy Wiggins Notes Ala. Admin. Code r. 810-3-15-.08 Adopted: September 30, 1982. Amended: Filed July 27, 1988. Filed May 15, 1992. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed: Filed December 14, 1999; e…

(1) In accordance with 26 U.S.C. § 212, an individual is allowed a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year: (a) for the production or collection of income; (b) for the management, conservation, or maintenance of property held…

(Repealed 1/18/00) Authors: Ann F. Winborne, Jerilyn P. Christian Notes Ala. Admin. Code r. 810-3-15-.10 Rule effective October 1, 1982. Amended: Filed July 27, 1988; May 15, 1992. Amended: Filed September 18, 1996; effective October 23,1996. Repealed: Filed December 14, 1999; ef…

(Repealed 1/18/00) Author: Ann Winborne, CPA Notes Ala. Admin. Code r. 810-3-15-.11 Adopted September 30, 1982. Amended: Filed July 27, 1988; May 15, 1992. Amended: Filed September 18 1996; effective October 23, 1996. Repealed: Filed December 14, 1999; effective January 18, 2000.…

(1) Effective for taxable years beginning January 1, 1990, a deduction is allowed for moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee or as a self-employed individual at a new principal place of w…

(1) Effective for taxable years beginning January 1, 1990, alimony and separate maintenance payments will be deductible in accordance with 26 U.S.C. § 215. For interpretation of federal statutes adopted by the Alabama Legislature, see Rule 810-3-1.1 -.01, Operating Rules. (2) For…

(1) A deduction is allowed for an individual's qualified retirement contribution in accordance with 26 U.S.C. § 219. (2) A deduction is allowed for contributions of an employer to an employees' trust or annuity plan, or for compensation paid or accrued on account of an employee u…

(Repealed 1/18/00) Authors: Rebecca S. Whisenant, Roy Wiggins, Ann F. Winborne, CPA Notes Ala. Admin. Code r. 810-3-15-.15 Adopted September 30, 1982. Amended: Filed July 27, 1988; May 15, 1992. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed: Filed Decemb…