Section 40-18-400 through Section 40-18-403, Code of Alabama 1975

Section 40-18-403 of the Code of Alabama provides for a discretionary income tax credit for businesses that utilize Alabama’s port facilities. Only taxpayers that have been approved by the Alabama Department of Commerce are eligible to claim the credit.

The Alabama Department of Commerce is the administering agency for the Port Credit. For more information regarding eligibility and qualifications, please contact incentives@commerce.alabama.gov or 334-242-0400. 

Learn more about the Port Credit at Made in Alabama:

Provisions of the Port Credit include:

• The credit can be applied against an approved company’s Alabama income tax liability for the tax year containing the last day of the Port Credit incentive period.
• The credit is not refundable or transferable, but any unused credit may be carried forward for five years.
• The credit may be utilized on a pro rata basis for entities taxed under Subchapter S or Subchapter K.

To claim the Port Credit on the Alabama income tax return, an online pre-certification via My Alabama Taxes is not required. The credit is claimed directly on the return at the time of filing. A copy of the Port Credit Certification issued by the Alabama Department of Commerce must be attached with the income tax return.

Additional Resources

• Act 2016-102
• Department of Commerce Port Credit Rules
• Act-2023-419

An online pre-certification via My Alabama Taxes is not required to claim this credit on the Alabama income tax return. The credit is claimed directly on the return at the time of filing.