A utility tax is levied on the furnishing of utility services which include power, natural gas, domestic water, and landline telephone. The Investment Credit can be claimed against these utility taxes paid within the reporting period for which the allocation is being made. The credit can be claimed against the recipient’s utility taxes paid that were either collected by the utility service company or paid directly to ALDOR under the Utility Tax Direct Pay account.

Prerequisites for claiming the Investment Credit against utility taxes paid:

• Your allocation schedule (allocating part or all of the credit to utility taxes) submitted via My Alabama Taxes has been approved and you have received a letter from ALDOR.

Procedures for claiming the Investment Credit against utility taxes paid:

• Log in to My Alabama Taxes.
• Once logged in, click on the ‘Other Actions’ tab, and locate the ‘Tax Incentives’ box.
• Click on the ‘Claim utility investment credit’ link and select the “Project Number” from the drop-down menu. The Project number will be provided in the letter from ALDOR. Click next.
• Complete the required fields as follows:
  1. Reporting Year Begin and Reporting Year End: Enter the reporting year period for this annual incentive. The beginning and ending reporting dates are provided in the Department of Commerce’s annual certification as well as letters from ALDOR associated with the recipient’s Investment Credit.
  2. Credit Amount: This amount is pre-populated based on the amount previously allocated when the Investment Credit allocation schedule was submitted and cannot be amended.
  3. Utilities: Enter the utility type, name of the utility company, and the amount of utility taxes paid to each utility against which the Investment Credit will be applied.
     

     Note! If you are a Direct Pay Permit Account holder, you will be asked “Are you claiming your Utility Investment Credit via Direct Pay?” Click “Yes” if you are claiming utility investment credit via Direct Pay and enter the Direct Pay Claim Amount. If not, click “No” and go back to step “3. Utilities” above.

     If you are allocating part of the credit to utility taxes paid via a service provider in addition to the Direct Pay claim, under “Utilities” please enter the utility type, name of the utility company, and the amount of utility taxes paid to each utility against which the remaining portion of the Investment Credit will be applied.

  4. Attachments: Attach copies of all utility bills within the reporting period for which the credit claim is being requested.

Once all the pertinent information has been provided, submit the claim. Once the claimed amounts have been verified, 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.