Prerequisites for project owners claiming the Alabama Workforce Housing Tax Credit through My Alabama Taxes:
- A letter from ALDOR outlining the steps to submit the workforce housing tax credit or, if a pass-through entity, to submit an allocation through My Alabama Taxes.
- Project owners who are not a pass-through entity must follow the steps below:
- Business Income Tax (BIT) Taxpayers: Report the credit on Form 20C using Schedule BC to apply the credit against your business income taxes.
- Individual Income Tax (IIT) Taxpayers: Report the credit on your individual income tax return using Schedule OC to apply the credit.
- Financial Institution Excise (FIE) Taxpayers: Report the credit on Form ET-1 using Schedule EC to apply the credit against your financial institution excise taxes.
- Fiduciary (FDT) Taxpayers: You may either: (a) claim the credit by reporting it on Form 41 using Schedule FC to apply it against taxes due by the fiduciary; or (b) pass the credit to your beneficiaries by logging into your My Alabama Taxes account, selecting the “FDT” account type, and under “I Want To” choose “Submit a Credit Claim.” Once completed, report the credit on Schedule FC and on the beneficiaries’ Schedule K1(s) when filing the Form 41.
Procedures for Pass-Through Entities submitting the credit claim allocation through My Alabama Taxes:
- Log in to My Alabama Taxes
- Once logged in, navigate to the Pass-Through Entity Tax under the Accounts tab.
- Click on the ‘Submit a Credit Claim’ link under the ‘Tax Incentives’ box and complete the following required fields:
- Credit Type – Select “Alabama Workforce Housing Tax Credit” from the dropdown menu.
- Contact Name – Please provide the name of the individual that should be contacted regarding the credit claim.
- Contact Email – Please provide an appropriate email address here.
- Contact Phone Number – Please provide an appropriate email address here.
- Owner information – If allocating to owner’s, partners’ or shareholders, please enter the appropriate information in this section.
Please review the information in full and submit the online credit claim allocation. Once the annual allocation has been made, the allocation cannot be amended.
Once ALDOR reviews the credit claim allocation, a web notice will be sent to the Project Owner notifying them of whether their credit claim allocation has been rejected or approved. If the credit claim allocation is approved, the taxpayer’s that have been allocated the credit will receive a letter from ALDOR instructing them on how to claim the credit.