A utility tax is levied on the furnishing of utility services which include power, natural gas, domestic water, and landline telephone. The Coal Credit for tax years 2023 and after can offset these utility taxes paid during the tax period in which the allocation is made. Recipients of the coal credit may apply the credit to utility taxes paid, whether collected by the utility provider or remitted directly to ALDOR through the Utility Tax Direct Pay account.

Prerequisites for claiming the Coal Credit against utility taxes paid:

Notice from ALDOR confirming the approval of your coal credit allocation towards utility taxes paid.

Procedures for claiming the Coal Credit against utility taxes paid:

• Complete the Form CC-UT
• Attach complete copies of the utility bills for the approved filing period in which the credit is being claimed and submit them to the Office of Economic Development at incentives@revenue.alabama.gov.
• Please be aware that the mailing address provided in the form is where the refund check will be sent.
• Only utility invoices paid by the recipient of the coal credit are eligible.
• Copies of invoices should be attached to substantiate each utility claimed.
• Only utility taxes paid within the qualifying tax year can be included. For example, if the coal credit is allocated for the 2023 tax year, invoices covering January 1, 2023, through December 31, 2023, can be included.

Please be advised that failure to provide adequate documentation to support the utility refund claim will result in delays in the processing. Once the claimed amounts have been verified and approved, you will be contacted by ALDOR, and a check will be issued for utility taxes paid for each respective utility service. Any unused credit associated with the annual allocation can be carried forward for five years.