Title 40 — Title 40

For the purposes of this article, the following terms shall have the following meanings: (1) APPRENTICE. A worker at least 16 years of age, except where a higher minimum age standard is otherwise fixed by law, who is employed to learn an apprenticeable occupation as provided in 2…

of the Legislature) Tax Credit for Eligible Employers of Apprentices. REPEALED BY ACT 2023-539, EFFECTIVE SEPTEMBER 1, 2023. (a) For tax years beginning on or after January 1, 2017, through the tax year beginning January 1, 2019, an Alabama income tax credit is allowed for eligib…

of the Legislature) Rulemaking Authority; Annual Report. REPEALED BY ACT 2023-539, EFFECTIVE SEPTEMBER 1, 2023. (a) The Alabama Office of Apprenticeship, under the direction of the Workforce Development Division of the Department of Commerce, with the consultation of the Board of…

of the Legislature) Duration. REPEALED BY ACT 2023-539, EFFECTIVE SEPTEMBER 1, 2023. The tax credits allowed under this article shall be effective January 1, 2017, for the 2017 taxable year and shall continue through the 2025 tax year, unless extended by act of the Legislature. H…

Income arising from an installment sale (including the sale by a dealer in personal property) may be reported in accordance with 26 U.S.C. §453, provided that the amendment made to said Section 453 by the Tax Reform Act of 1984 (Pub. L. No. 98-369), adding 26 U.S.C. §453(i), shal…

This article shall be known and may be cited as the “Alabama Taxpayer Protection and Assistance Act.” History: (Act 2017-363, §1.)

The Alabama Taxpayer Protection and Assistance Act is enacted to protect consumers by establishing a mechanism to ensure that qualified individuals provide tax preparation services in Alabama. History: (Act 2017-363, §2.)

When used in this article, the following terms shall have the following meanings: (1) DEPARTMENT. The Alabama Department of Revenue. (2) INCOME TAX RETURN PREPARER. (a) A person who prepares for compensation, or who employs one or more persons to prepare for compensation, any inc…

No person may provide tax preparation services for Alabama income tax returns, unless an IRS issued Preparer Tax Identification Number is provided by such preparer when submitting a return and signing as a paid preparer. History: (Act 2017-363, §4.)

(a) For taxable years beginning on or after January 1, 2018, the department, by rule, shall require any income tax return preparer, as defined in this article, to include his or her PTIN on any tax return prepared by the income tax return preparer and filed under this chapter, or…

(a) The department may investigate the actions of any income tax return preparer filing Alabama income tax returns and may bar or suspend an income tax return preparer from filing returns with the department for good cause, subject to the appeal rights under Chapter 2A of this ti…

The department shall adopt rules to assist with the implementation and enforcement of this article. History: (Act 2017-363, §10.)

Deductions. (a) Any tax credits or advance refund amounts received as a result of the federal Coronavirus Aid, Relief, and Economic Security Act, as provided in 26 U.S.C. § 6428, or as a result of Section 272 of the COVID- related Tax Relief Act of 2020 (RELIEF Act), Pub. L. 116-…

Individual Income Taxation and Deductions. (a) Any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1106 or Section 1109 of the federal Coronavirus Aid, Relief, and Economic Security Act as redesignated or amended by the Economic Aid to H…

Individual Income Taxation and Deductions. (a) Any subsidy payment for covered loans as described in Section 1112(c) of the federal Coronavirus Aid, Relief, and Economic Security Act; any amounts received as Emergency EIDL Grants under Section 1110 of the federal Coronavirus Aid,…

(a) This article shall be known and may be cited as the Sweet Home Alabama Tourism Investment Act. (b) For purposes of this article, the following words and phrases have the following meanings: (1) APPLICANT. Any corporation, limited liability company, partnership, sole proprieto…

(a) Prior to the allowance of a tax rebate on transactional taxes, an application shall be filed with the tourism department in the manner established by the department. (b) The tourism department shall adopt standards to be used by the Alabama Tourism Advisory Board for the revi…

(a) In order for an applicant that proposes a certified tourism destination project to be an approved company, the board shall make both of the following findings: (1) That the project is in fact a certified tourism destination project. (2) That the amount of tourism rebates soug…

(a) A tax rebate from taxes generated within the tourism destination attraction by the certified tourism destination project over a 10-year period from the commencement of operation, which must occur after June 15, 2023, in the amount of up to five million dollars ($5,000,000) ma…

There is created the Tourism Project Sales Tax Incentive Fund, which may consist of monies appropriated or otherwise made available by the Legislature in any manner, and monies from any other source designated for deposit into such fund, but not include monies subject to a consti…

The department shall report to the Legislature by the second legislative day of the 2026 Regular Session, and annually thereafter, on the overall economic activity, usage, and impact to the state of the tax rebates allowed for tourism destination projects. The information in the …

Suppliers. In no event does Act 2023-34 authorize any electric provider to provide retail electric service outside of its electric service territory as determined under the applicable provisions of Chapter 14 of Title 37. Nothing in Act 2023-34 is intended to amend, repeal, enlar…

Definitions. For the purposes of this article, the following words have the following meanings: (1) QUALIFIED RESCUE SQUAD MEMBER. An active member of an organized rescue squad of a city, town, county, or other subdivision of the state or a public corporation and a member of the …

Income Tax Credit for Qualified Volunteer Firefighters or Qualified Members of an Organized Rescue Squad. (a) For tax years beginning on and after January 1, 2023, and ending December 31, 2027, unless extended by an act of the Legislature, a qualified volunteer firefighter who is…

The tax levied and imposed by Section 40-18-2 shall be computed as follows: (1) For a single person, head of family, or married persons filing separate returns: a. Two percent of taxable income not in excess of five hundred dollars ($500). b. Four percent of taxable income in exc…

Any person or corporation, joint stock company or association liable to income tax under this chapter, which shall fail to make return as required by this chapter within the time allowed, shall be guilty of a misdemeanor and on conviction thereof shall be fined not less than $10,…

This article shall be known and cited as the Small Business Relief and Revitalization Act of 2022. History: (Act 2022-53, §1.)

For tax years ending after the enactment of the federal American Rescue Plan Act of 2021, any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1005 of the federal American Rescue Plan Act shall be all of the following: (1) Exempt from inc…

The Department of Revenue may adopt rules for the implementation and administration of this article. History: (Act 2022-53, §6.)

In every respect herein specified in this chapter, returns for the levy and collection of the taxes herein provided for shall be subject to the lien provisions of this title. All income taxes collected by the Department of Revenue shall be as soon as practicable turned over to th…

In addition to any other transfers that may be provided by law, the state Comptroller shall direct from the Education Trust Fund to the Refundable Tax Credit Fund the amount needed to make the payments of the one-time refundable tax credit provided for in Section 40-18-511, as we…

(a) As used in this section, the term “qualified taxpayer” means an individual taxpayer who filed an Alabama individual income tax return pursuant to the tax levied in Section 40-18-5, on or before October 17, 2022, for the taxable year that began on January 1, 2021, including an…

It is not the intent of this article to make appropriations, but the funding required to implement this article shall be made in a supplemental appropriations act. History: (Act 2023-377, §3; Act 2023-511, §3.)

This article shall be known and may be cited as the Preceptor Tax Incentive Program Act. History: (Act 2023-519, §1.)

For the purposes of this article, the following terms have the following meanings: (1) CLINICAL PRECEPTORSHIP. A clinical educational or training rotation for a student in any of the following programs that are physically located in this state and approved by and provided through…

Alabama Statewide Area Health Education Centers Program Office. (a)(1)The Alabama Statewide Area Health Education Centers Program Office shall administer the program and certify clinical preceptorships on behalf of all eligible qualified health professions training programs. (2) …

Based Faculty Preceptors. (a)(1) Beginning with the 2024 tax year, a community-based faculty preceptor, if he or she conducts a clinical preceptorship, shall be allowed a credit against the tax imposed by Section 40-18-2, in the following amounts: a. A community-based physician, …

Certificate; Annual Informational Report. The Alabama Statewide Area Health Education Centers Program Office shall do both of the following: (1) Issue to an eligible taxpayer a credit certificate to indicate the number of approved preceptor rotations and other information require…

Accomplishments. (a) Annually, on or before the first day of December, the Alabama Statewide Area Health Education Centers Program Office shall report on the condition, performance, and accomplishments of the program to the Governor, Speaker of the House of Representatives, Presi…

The Department of Revenue may adopt rules for the implementation and administration of this article. History: (Act 2023-519, §7.)

This article shall be repealed on September 29, 2031, unless extended by act of the Legislature. History: (Act 2023-519, §8.)

All income tax returns filed under this chapter, or copies thereof on file with the State Department of Revenue, shall be open to inspection by officials or duly authorized agents of the Bureau of Internal Revenue lawfully charged with the administration or enforcement of the fed…

This article shall be known and may be cited as the Alabama Workforce Housing Tax Credit Act. History: (Act 2024-302, §1.)

Regarding the adoption of qualified allocation plans as they relate to the workforce housing tax credit by the authority, the authority shall incentivize and prioritize four percent qualified projects, or in the case of awards under Section 40-18-533(f), qualified projects in are…

For the purposes of this article, the following terms have the following meanings: (1) ALABAMA TAX LIABILITY. The taxes otherwise due under Sections 27-3-29, 27-4A-3, 40-16-4, or 40- 18-2. (2) AUTHORITY. The Alabama Housing Finance Authority or its successor authority or agency. …

(a)(1) For applications for federal tax credits submitted to the authority on and after January 1, 2025, the authority, upon approving a federal low-income housing tax credit for a qualified project pursuant to the authority’s qualified allocation plan or multifamily housing reve…

The authority shall administer the workforce housing tax credit program and shall adopt the guidelines and qualified allocation plans necessary to implement and administer this article consistent with federal law provided in 26 U.S.C. § 42. The qualified allocation plan shall pro…

(a) The tax credit created pursuant to this article may only be claimed with respect to taxable years beginning on or after January 1, 2025. The tax credit provided in this article shall be subject to the reporting requirements of Section 40-1-50. (b) The department and the Alaba…

The assessment and collection of the income taxes imposed by this chapter shall be under the supervision of the Department of Revenue. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §420.)

The Legislature hereby makes the following findings of fact and declares its intent to be as follows: Alabama is currently attracting and creating jobs and business investments at a record-setting pace. Despite historically low unemployment rates, Alabama’s workforce participatio…