 |
Alabama Code (Last Updated: November 28, 2014) |
 |
Title40 REVENUE AND TAXATION. |
|
|
Chapter18. INCOME TAXES. |
| Article 1. General Provisions. |
| § 40-18-1. Definitions. |
| § 40-18-1.1. Operating rules. |
| § 40-18-2. Levied; persons and subjects taxable generally. |
| § 40-18-2.1. Income of foreign missionary exempt. |
| § 40-18-3. Income of officers or agents of the United States, etc. |
| § 40-18-4. Interest or other income received from obligations of the United States or its possessions, agencies or instrumentalities. |
| § 40-18-5. Tax on individuals. |
| § 40-18-6. Gain or loss - Basis of property; adjusted basis. |
| § 40-18-7. Gain or loss - Determination of amount. |
| § 40-18-8. Gain or loss - Recognition. |
| § 40-18-9. Gain or loss - Optional method for returning as income increases in redemption value of securities purchased at a discount. |
| § 40-18-11. Inventory. |
| § 40-18-12. Net income of individuals - Defined. |
| § 40-18-13. Computation of income. |
| § 40-18-14. Adjusted gross income of individuals. |
| § 40-18-14.1. Deferred compensation plans. |
| § 40-18-14.2. Adjusted gross income. |
| § 40-18-14.3. Gross income - Discount and interest. |
| § 40-18-15. Deductions for individuals generally. |
| § 40-18-15.1. Net income taxable income defined - Generally. |
| § 40-18-15.2. Net operating loss. |
| § 40-18-15.3. Deductions for health insurance premiums. |
| § 40-18-15.4. Deductions for certain retrofitting or upgrades to homes - Residence in Alabama Insurance Underwriting Association zone. |
| § 40-18-15.5. Deductions for certain retrofitting or upgrades to homes - Residence in Alabama. |
| § 40-18-16. Depreciation. |
| § 40-18-17. Items not deductible. |
| § 40-18-18. Amortization of war or emergency facilities. |
| § 40-18-19. Exemptions - Generally. |
| § 40-18-19.1. Exemptions for severance, unemployment compensation, etc. |
| § 40-18-19.2. Exemption of certain death benefit payments for peace officer or fireman killed in line of duty. |
| § 40-18-20. Exemptions - Military retirement benefits. |
| § 40-18-21. Credits for taxes paid on income from sources outside the state and for job development fees. |
| § 40-18-21.1. Annual report of credits claimed for taxes paid to foreign countries. |
| § 40-18-22. Taxpayers engaged in multistate business - Allocation and apportionment of deductions and exemptions. |
| § 40-18-23. Taxpayers engaged in multistate business - Option of certain taxpayers to report and pay tax on basis of percentage of volume. |
| § 40-18-24. Taxation of subchapter K entity. |
| § 40-18-24.1. Composite return and payment by nonresident owner of subchapter K entity. |
| § 40-18-24.2. Taxation of pass-through entities. |
| § 40-18-24.3. Taxation on distributive share of interest, dividends, etc., of nonresident member of qualified investment partnership. |
| § 40-18-25. Estates and trusts. |
| § 40-18-25.1. Estates and trusts - Exemptions. |
| § 40-18-25.2. Estates and trusts - Deductions from gross income of net operating loss. |
| § 40-18-27. Individual taxpayer's returns; liability of innocent spouse. |
| § 40-18-26. Information from source of income. |
| § 40-18-28. Returns of subchapter K entities and single member limited liability companies. |
| § 40-18-29. Fiduciary returns. |
| § 40-18-30. Return when accounting period changes. |
| § 40-18-31. Corporate income tax - Generally. |
| § 40-18-31.1. Election for foreign corporations to classify dividend income from certain subsidiaries as business or nonbusiness income. |
| § 40-18-32. Corporate income tax - Exemptions. |
| § 40-18-33. Corporate income tax - Taxable income. |
| § 40-18-34. Additions required by corporations. |
| § 40-18-35. Deductions allowed to corporations. |
| § 40-18-35.1. Carry forward of net operating losses. |
| § 40-18-36. Distributions by corporations. |
| § 40-18-37. Items not deductible by corporations. |
| § 40-18-38. Additional deductions allowed for corporations; credits. |
| § 40-18-39. Corporate returns. |
| § 40-18-40. Tax to be reported on forms; department may assess additional tax penalty or interest. |
| § 40-18-41. Amortization of ad valorem tax. |
| § 40-18-42. Time and methods of payment of tax. |
| § 40-18-44. Installment method. |
| § 40-18-50. Penalty for failure to make return within time specified. |
| § 40-18-51. Applicability of lien provisions; disposition of collections; collection prior to delinquency. |
| § 40-18-53. Inspection of returns by federal or foreign state agents. |
| § 40-18-54. Supervision of assessment and collection. |
| § 40-18-55. Statement to be furnished by taxpayer. |
| § 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. |
| § 40-18-57. Rules to be promulgated by Department of Revenue. |
| § 40-18-58. Appropriation. |
| § 40-18-59. Additional appropriations. |
| Article 2. Withholding Tax; Optional Short Form Tax; Declaration of Estimated Tax. |
| Division 1. General Provisions. |
| § 40-18-70. Definitions. |
| § 40-18-71. Withholding tax. |
| § 40-18-72. Included and excluded wages. |
| § 40-18-73. Withholding certificates. |
| § 40-18-73.1. Provisional employers. |
| § 40-18-74. Payment of amounts withheld. |
| § 40-18-75. Statement to be furnished employee. |
| § 40-18-76. Liability for tax withheld. |
| § 40-18-77. Refund to employer. |
| § 40-18-78. Credit for tax withheld. |
| § 40-18-79. Overpayment of tax; credit or refund available. |
| § 40-18-80. Payment of estimated tax by individuals. |
| § 40-18-80.1. Payment of estimated tax by corporations. |
| § 40-18-81. Optional short form tax. |
| § 40-18-82. (Repealed effective for tax years beginning after December 31, 2009) Estimated tax. |
| § 40-18-83. (Repealed effective for tax years beginning after December 31, 2009) Payment of estimated tax. |
| § 40-18-83.1. (Repealed effective for tax years beginning after December 31, 2009) Declaration and payment of estimated tax by corporations. |
| § 40-18-84. Adjusted gross income. |
| § 40-18-85. (Repealed effective for tax years beginning after December 31, 2009) Estates and fiduciaries. |
| § 40-18-86. Sale or transfer of real property and associated tangible property by nonresidents. |
| Division 2. Wage Winnings Withholding Tax. |
| § 40-18-90. Definitions. |
| § 40-18-91. Wager proceeds; withholding of state income tax. |
| Article 3. Setoff Debt Collection. |
| § 40-18-100. Definitions. |
| § 40-18-101. Remedy additional. |
| § 40-18-102. Collection of debts by setoff. |
| § 40-18-103. Procedure for setoff and notification of taxpayer. |
| § 40-18-104. Hearing procedure. |
| § 40-18-105. Finalization and notice of setoff. |
| § 40-18-106. Priority. |
| § 40-18-107. Commissioner may provide claimant agency information; confidentiality of information. |
| § 40-18-108. Effect of setoff on refund. |
| § 40-18-109. Issuance by State Treasurer of separate warrants. |
| § 40-18-110. Payment of fee. |
| Article 4. Solar Energy Tax Credits. |
| § 40-18-120. Active solar energy tax credits. |
| § 40-18-121. Passive solar energy tax credits. |
| Article 4A. Rural Physician Tax Credit. |
| § 40-18-130. Legislative intent. |
| § 40-18-131. Definitions. |
| § 40-18-132. Physicians qualifying for credit; time limit; promulgation of rules. |
| Article 4B. Credits Against State Income Tax Liability. |
| § 40-18-135. Definitions. |
| § 40-18-136. Credit to employer. |
| § 40-18-137. Credit limited to income tax liability. |
| § 40-18-138. Rules regarding procedures for approving education programs. |
| § 40-18-139. Reimbursement to employer. |
| Article 5. Voluntary Check-off Designations on State Income Tax Returns. |
| § 40-18-140. Contribution designations. |
| § 40-18-141. Arts Development Fund - Established; appropriation; distribution of funds. |
| § 40-18-142. Alabama Nongame Wildlife Program - Legislative declarations and intent. |
| § 40-18-143. Alabama Nongame Wildlife Program - Contribution designation form. |
| § 40-18-144. Alabama Nongame Wildlife Program - Appropriation. |
| § 40-18-145. Alabama Nongame Wildlife Program - Implementation; no rights of Department of Conservation and Natural Resources. |
| § 40-18-146. Political party defined; designated contribution by taxpayers filing state income tax return; disposition of contributions. |
| § 40-18-147. Alabama Aging Program. |
| § 40-18-148. Alabama Veterans' Home Program; legislative intent; designation form; appropriation. |
| § 40-18-149. Alabama Indian Affairs Commission - Contribution designation. |
| § 40-18-150. Foster Care Trust Fund - Contribution designation. |
| § 40-18-151. Alliance for the Mentally Ill of Alabama and Mental Health Consumers of Alabama - Contribution designation. |
| § 40-18-152. Alabama Breast and Cervical Cancer Research - Program Contribution designation. |
| § 40-18-153. Alabama 4-H Club Foundation, Incorporated. |
| § 40-18-154. Alabama Military Support Foundation, Inc. - Contribution designation. |
| § 40-18-155. Alabama Firefighters Annuity and Benefit Fund. |
| § 40-18-156. Alabama Veterinary Medical Foundation for the Spay-Neuter Program. |
| § 40-18-157. Alabama Association of Rescue Squads. |
| Article 6. Alabama S Corporations. |
| § 40-18-160. General provisions. |
| § 40-18-161. Determination of taxable income. |
| § 40-18-162. Determination of tax of shareholder. |
| § 40-18-163. Adjustments for services rendered or capital furnished by spouse, etc., of shareholder or beneficiary. |
| § 40-18-164. Increase or decrease in basis of shareholder's stock; special rules. |
| § 40-18-165. Distribution of property generally. |
| § 40-18-167. Applicability of chapter. |
| § 40-18-168. "Carryforward" and "carryback" provisions. |
| § 40-18-169. Adjustments to earnings and profits. |
| § 40-18-170. Circumstances under which corporation treated as partnership; "two-percent shareholder" defined. |
| § 40-18-171. Determination of shareholder's pro rata share; "affected shareholders" defined. |
| § 40-18-172. "Post-termination transition period" and "determination" defined. |
| § 40-18-173. Interpretation of article generally. |
| § 40-18-174. Tax imposed on certain built-in gains. |
| § 40-18-175. Tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts. |
| § 40-18-176. Nonresident shareholder composite returns. |
| Article 7. Tax Credits for Projects of New Businesses and Business Expansions. |
| § 40-18-190. Definitions. |
| § 40-18-191. Filing with department written statement of intent to claim credit. |
| § 40-18-192. Effect of compliance with requirements; agreements specifying method by which income generated and allocation of credit. |
| § 40-18-193. Qualifications for capital credits. |
| § 40-18-193.1. Applicabilty to gaming facilities. |
| § 40-18-194. Entities allowed capital credit. |
| § 40-18-195. Capital credit not to exceed capital costs of project. |
| § 40-18-195.1. Capital credits and abatements under 2007 North American Classification System Industry Group 2121. |
| § 40-18-196. Department to report annually. |
| § 40-18-197. Department to adopt regulations and to audit companies. |
| § 40-18-198. Officer to file affidavit with department. |
| § 40-18-199. State Industrial Development Authority not to grant credits except for certain entities. |
| § 40-18-200. Entities approved by State Industrial Development Authority prior to January 16, 1995, may elect to receive credit under article. |
| § 40-18-201. Companies to maintain records; regulations concerning determination of income. |
| § 40-18-202. Availability of capital credits for new projects after December 31, 1998. |
| § 40-18-202.1. Availability of capital credits after December 31, 2018. |
| § 40-18-203. Provisions to govern administration of article. |
| Article 7A. Tariff Credit Act of 2011. |
| § 40-18-205. Short title. |
| § 40-18-206. Definitions. |
| § 40-18-207. Statement of intent to file for tariff card. |
| § 40-18-208. Recommendation and approval; Notice of Tariff Credit. |
| § 40-18-209. Availability of tariff credit on pass-through basis. |
| § 40-18-210. Relation to Article 7 of this chapter. |
| § 40-18-211. Filing requirements. |
| § 40-18-212. Annual report. |
| § 40-18-213. Rules and regulations; fees; audit. |
| § 40-18-214. Availability of tariff credits; tariff costs treated as income; minimum employment level. |
| § 40-18-215. Implementation and administration of article. |
| Article 8. Coal Production Tax Credit. |
| § 40-18-220. Credit for corporations producing coal mined in Alabama. |
| § 40-18-221. Department to promulgate and issue rules and regulations. |
| Article 9. Capital Credits for Qualified Products. |
| § 40-18-240. Definitions. |
| § 40-18-241. Written statement of intent to claim credit. |
| § 40-18-242. Written agreements with department. |
| § 40-18-243. Availability of credit on pass-through basis. |
| § 40-18-244. Credits not to exceed costs. |
| § 40-18-245. Report to Legislature. |
| § 40-18-246. Regulations; periodic audits. |
| § 40-18-247. Affidavit of compliance. |
| § 40-18-248. Maintenance of records; promulgation of regulations. |
| § 40-18-249. Availability of credit after December 31, 2005. |
| § 40-18-250. Administration of article. |
| Article 10. Reemployment Act of 2010. |
| § 40-18-270. Short title. |
| § 40-18-271. Deduction for businesses that hire certain unemployed persons. |
| § 40-18-272. Adoption of rules. |
| Article 11. Full Employment Act of 2011. |
| § 40-18-290. Short title. |
| § 40-18-291. Definitions. |
| § 40-18-292. Legislative findings. |
| § 40-18-293. Alabama income and financial institution excise tax credit. |
| Article 12. Catastrophe Savings Accout. |
| § 40-18-310. Definitions. |
| § 40-18-311. Income tax deduction; contributions to catastrophe savings account. |
| § 40-18-312. Distributions from catastrophe savings account; additional tax. |
| § 40-18-313. Promulgation of rules. |
| Article 13. "Heroes for Hire" Tax Credit Act of 2012. |
| § 40-18-320. Short title. |
| § 40-18-321. Requirements for tax credit. |
| § 40-18-322. Eligibility for tax credit. |
| § 40-18-323. Expenses associated with a start-up business. |
| § 40-18-324. Duties and procedures. |
| Article 14. Irrigation Equipment Tax Credit. |
| § 40-18-340. Definitions. |
| § 40-18-341. Expense of qualified irrigation equipment. |
| § 40-18-342. Tax credit for equipment and conversion costs. |
| § 40-18-343. Applicability of environmental and water laws and regulations. |
| § 40-18-344. Rules and regulations. |
| Article 15. Private Intrastate Adoption or Adoption of a Qualified Foster Child. |
| § 40-18-360. Definitions. |
| § 40-18-361. Tax credit for certain adoptions. |
| § 40-18-362. Postsecondary education assistance. |
| § 40-18-363. Rulemaking authority. |