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Tax Credit Pre-Certification and Claims for Business Income Tax FAQ

 

What credits are required to be pre-certified through MAT?

All credits that require pre-certification must be submitted using your MAT Business Income Tax Account.  The credits that require pre-certification are:

Coal Credit

Full Employment Act of 2011

Veterans Employment Act – Employer Credit

Veterans Employment Act – Business Start-Up Expense Credit

Qualified Irrigation System / Reservoir System Tax Credit

2013 Alabama Historic Rehabilitation Tax Credit

Alabama Small Business and Agribusiness Jobs Act Credit

Apprenticeship Tax Credit

2017 Alabama Historic Rehabilitation Tax Credit

Alabama Film Rebate

Income Tax Capital Credit*

*Income Tax Capital Credit – Project Entities submit the Annual Report (Form AR-C) through MAT under the tax period it will be utilized.  For Corporations, the Annual Report and KRCC are now combined. See https://revenue.alabama.gov/tax-incentives/major-tax-incentives/income-tax-capital-credit/.

How do you claim credits that do not require pre-certification?

These credits will be subject to an approval process when the tax return is filed claiming the credit.  The following are credits that do not require pre-certification through MAT:

Enterprise Zone Credit

Alabama New Markets Development Credit

Alabama Accountability Act Credit – Scholarship Granting Organization (SGO) portion

Dual Enrollment Credit

Investment Credit (Alabama Jobs Act)*

Port Credit

Growing Alabama Credit

*Investment Credit (Alabama Jobs Act) – The approval of this credit is managed through the Department of Commerce.  Once Department of Commerce has approved the annual certification, Alabama Department of Revenue will notify the investing company to complete an allocation schedule through MAT.  See https://revenue.alabama.gov/tax-incentives/major-tax-incentives/investment-credit/.

Any tax credits originating from an ownership interest in a pass through entity (partnership, S-Corporation or disregarded entity) that flow through to a business taxpayer will not need to be pre-certified by the business income tax filer.  The pass through entity is required to complete the pre-certification process prior to issuing the Schedule K-1 for any credits that require pre-certification before it reports the credit to its members on Schedule K-1.

For additional information on any of these tax credits, please visit the Department of Revenue’s website at:   https://revenue.alabama.gov/tax-incentives/about/income-tax-incentives/.

How do you claim a tax credit that requires pre-certification using MAT?

  1. Log into MAT using your User ID and Password.
  2. Select the “Business Income Taxes” Account Type.
  3. Under “I Want To” column select “Submit a credit claim.”
  4. Enter the information requested for the credit claim: Credit Type, Filing Period, Credit Amount, and upload attachments (include documentation received to verify the authorization of the credit). Select “Next.”
  5. Review the information entered in Step 4. Select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

Who should you contact for assistance with the credit submission process and/or questions about business income tax credits?

Business income tax filers needing assistance with the credit claim process and/or business income tax filers who have questions about available tax credits should call the Corporate Income Tax Section at (334) 242-1200.