Title 40

(a) Each person making any payment of proceeds from a wager which constitutes “winnings subject to withholding” as defined by Section 40-18-90, shall deduct and withhold income tax in the amount of five percent of the payment. (b) Each person making withholding of state income ta…

For the purposes of this article, the following terms shall have the following meanings: (1) CLAIMANT AGENCY. Any of the following: a. The Alabama Commission on Higher Education with respect to the collection of debts under either of the following: 1. The Alabama Student Grant Pr…

The collection remedy authorized by this article is in addition to and not in substitution for any other remedy available by law. (Acts 1981, No. 81-696, p. 1168, §1.)

(a) A claimant agency may submit debts in excess of $25 to the department for collection through setoff, under the procedure established by this article, except in cases where the validity of the debt is legitimately in dispute, an alternate means of collection is pending and bel…

(a) A county or municipality may submit a debt of at least $25 owed to it for collection under this chapter. Provided, however, that a county or municipality must submit the debt to the department through one of the following: (1) The Association of County Commissions of Alabama …

(a) When the claimant agency receives a protest or application in writing from a taxpayer within 30 days of the notice issued by the department pursuant to subsection (c) of Section 40-18-103, the claimant agency shall set a date to hear the protest and give notice to the taxpaye…

(a) Upon final determination of the amount of the debt due and owing by means of a hearing provided by Section 40-18-104 or by the taxpayer’s default through failure to comply with Section 40-18-103 mandating timely request for review, the claimant agency shall remove the amount …

The department has priority over every claimant agency for collection by setoff under this article. (Acts 1981, No. 81-696, p. 1168, §1.)

(a) Notwithstanding any confidentiality statute, the Commissioner of Revenue may provide to a claimant agency all information necessary to accomplish and effectuate the intent of this article. (b) The information obtained by a claimant agency from the department in accordance wit…

When the setoff authorized by this article is exercised, the refund which is set off shall be deemed granted. (Acts 1981, No. 81-696, p. 1168, §1.)

In those cases where the amount claimed to be due and owing by the claimant agency is less than the refund due the taxpayer the State Treasurer is authorized upon the request of the department to issue two warrants, one payable to the claimant agency for the amount claimed to be …

(a) The fee charged to the department by the United States Department of the Treasury to intercept a federal income tax refund and forward it to the department to pay any unpaid Alabama tax liability that is eligible to be submitted to the United States Department of the Treasury…

(a) As used in this article, the following terms have the following meanings: (1) MANUFACTURED HOME. Any structure built to the Manufactured Home Construction and Safety Standards which displays a red certification label on the exterior of each transportable section. (2) PRIMARY …

It is the intent of the Legislature to institute programs that will make Alabama more competitive with other states in the recruitment and retention of physicians and reduce inequities that a small or rural hospital and small or rural communities have in the funding and recruitme…

For the purposes of this article, the following words have the following meanings, respectively, unless the context clearly indicates otherwise: (1) RURAL PHYSICIAN. A physician licensed to practice medicine in Alabama who practices and resides in a small or rural community and h…

Beginning with the 1994 tax year, a person qualifying as a rural physician shall be allowed a credit against the tax imposed by Section 40-18-2, in the sum of $5,000. No credit shall be allowed to a rural physician who is, on May 4, 1993, practicing in a small or rural community.…

(a) The Rural Physician Tax Credit, Article 4A, commencing with Section 40-18-130, Chapter 18, of Title 40, is repealed effective December 31, 2028, unless extended by an act of the Legislature prior to that date for no more than five additional years.(b) The repealing of the inc…

The following definitions apply to this article: (1) APPROVED BASIC SKILLS EDUCATION PROGRAM. A basic skills education program that has received written approval from the Alabama Department of Education pursuant to this article. (2) BASIC SKILLS EDUCATION PROGRAM. An approved emp…

Beginning with tax year 1993, a tax credit of 20 percent of the actual costs of education shall be provided to an employer who provides or sponsors an approved basic skills education program pursuant to this article. (Acts 1993, 1st Ex. Sess., No. 93-907, p. 204, §2.)

The tax credit available to an employer pursuant to this article shall be limited to the amount of the employer’s income tax liability for the taxable year as computed without regard to this article. (Acts 1993, 1st Ex. Sess., No. 93-907, p. 204, §3.)

The Alabama Department of Education shall promulgate and adopt rules regarding the methods, procedures, and standards it deems necessary for approving employer provided or employer sponsored basic skills education programs. The Department of Education shall include in its rules a…

No tax credit shall be granted pursuant to this article to any employer of an employee participating in a basic skills education program if the employer receives or requires reimbursement or any form of remuneration for any cost of the education. (Acts 1993, 1st Ex. Sess., No. 93…

(a)(1) Each Alabama resident individual income taxpayer desiring to contribute to any of the programs listed in subsection (b) may designate an amount of his or her refund, rounded off in whole dollars, in an appropriate box on the state income tax return form, to be credited to …

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-385, p. 562, §2.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-424, p. 666, §1.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-424, p. 666, §2.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-424, p. 666, §3.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-424, p. 666, §4.)

(a) For purposes of this article, the term “political party” shall be defined as provided in Section 17-16-2. (b) Every individual who files a state income tax return may designate a contribution to a political party as provided under this section. Amounts of contributions for an…

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1984, No. 84-247, p. 389; Act 2000-717, p. 1539, §1.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1988, 1st Ex. Sess., No. 88-853, p. 325.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1990, No. 90-387 p. 529.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1992, No. 92-605, §1.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1997, No. 97-631, p. 1145, §1.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Act 2001-465, p. 619, §1.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Act 2003-341, p. 850, §1.)

(a) Each Alabama state individual income tax return form for the 2009 tax year and each year thereafter shall contain a designation as follows: “Alabama Military Support Foundation, Incorporated. “Check ( ) if you wish to designate $1, $5, $10, or more of your state income tax re…

(a) Each Alabama state individual income tax return form for the 2010 tax year and each year thereafter shall contain a designation as follows: “Alabama Firefighters Annuity and Benefit Fund. “Check ( ) if you wish to designate $2 or more of your state income tax refund. “If join…

(a) Each Alabama state individual income tax return form for the 2012 tax year and each year thereafter shall contain a designation which allows each individual taxpayer to designate a contribution to the Alabama Veterinary Medical Foundation for the Spay-Neuter Program. (b) The …

(a) A minimum annual contribution of two dollars ($2) may be voluntarily contributed to the Alabama Association of Rescue Squads on the income tax return of the contributor by indicating on a check-off box which shall be provided. The check-off shall be described as the “Alabama …

(a) An Alabama S corporation shall not be subject to the tax imposed by Section 40-18-31. (b) For purposes of this chapter, an “Alabama S corporation” is a corporation: (1) With respect to which an election under 26 U.S.C. §1362 is in effect; or (2)a. With respect to which there …

(a) The taxable income of an Alabama S corporation shall be determined in the same manner as in the case of an individual except that the items determined in subdivision (1), subsection (a) of Section 40-18-162 shall be separately stated, and the following deductions shall not be…

(a) In determining the tax of a shareholder for the shareholder’s taxable year in which the taxable year of the Alabama S corporation ends, or for the final taxable year of a shareholder who dies or of a trust or estate that terminates before the end of the corporation’s taxable …

If an individual who is the spouse or lineal descendant or ancestor of one or more shareholders of an Alabama S corporation or who is a spouse, a lineal descendant or ancestor of a beneficiary of a trust which is a shareholder of an Alabama S corporation renders services for the …

(a) The basis of each shareholder’s stock in an Alabama S corporation shall be increased for any period by the sum of the following items determined with respect to that shareholder for the period: (1) The items of income described in subdivision (1) of subsection (a) of Section …

(a) A distribution of property made by an Alabama S corporation with respect to its stock to which, but for this article, Section 40-18-36 would apply shall be treated in the manner provided in subsection (b) or (c) of this section, whichever applies. (b) In the case of a distrib…