PROCEDURES FOR RESERVING A GROWING ALABAMA CREDIT
Eligible donors may reserve a Growing Alabama Credit for contributions made to an Economic Development Organization (EDO) for an approved qualifying project. Reservations are made online and are on a first-come, first-served basis, subject to verification by the EDO confirming that: the contribution has been received, the project has been funded in accordance with the applicable Growing Alabama Funding Agreement, and the project will be undertaken.
Important Dates to Remember
Procedures for Eligible Donors
Prerequisite for reserving a Growing Alabama Credit for an approved qualifying project:
- Donors must have a My Alabama Taxes (MAT) account to reserve the credit through ALDOR’s online reservation system.
Procedures for making an online credit reservation through MAT:
Part I – Make a Donation
- Log in to My Alabama Taxes using your login credentials.
- Once logged in, navigate to the appropriate tax account for the taxing entity:
- For corporations, select Business Income Tax. If the corporation is a public utility, then select Utility 2.2 Gross Receipts License Tax.
- For S corps, LLCs, and partnerships, select Pass Through Entity. If the entity is a public utility, then select Utility 2.2 Gross Receipts License Tax.
- For individuals, select Individual Income Tax.
- For financial institutions, select Financial Institution Excise Tax.
- For insurance companies, select Business Privilege Tax or Withholding Tax.
- Under the ‘I Want to’ section, click on ‘Report a donation to an EDO’ and complete the required fields as follows:
- Under ‘Donor Information,’ enter the donor’s contact information and address.
- Under ‘EDO Donation Information,’ click on the project for which you wish to make the credit reservation.
- Donation amount – Enter the amount of credit you are reserving.
- Donation date – Enter the date the reservation is made. Please note that the donor has 21 days from this date to make the cash contribution to the EDO. Any donation that is not confirmed by the EDO on the date the online project reservation is closed will be denied.
Part II – Review Submission
The donor must agree to the terms and rules of the donation by checking the box before the donation can be submitted. The terms and rules include the following:
- The donor has 21 days from the date of the online credit reservation to make a cash donation to the EDO for the approved project.
- The EDO has 60 days from the date the project is added to the online system to confirm that the taxpayer’s donation has been received, the project has been funded, and the project will be undertaken.
- In the event the taxpayer’s donation is greater than the amount of the reservation, the credit is limited to the amount of the reservation available for the project.
- The credit is only available to the donating taxpayer making the donation.
- The donor acknowledges the disclosure requirements under Section 41-29-3, Code of Alabama, and shall disclose the amount of the Growing Alabama Credit received and the realized benefits to the Secretary of Commerce. The information provided shall subsequently be included in the Department of Commerce’s reporting requirements under Section 40-1-50, Code of Alabama.
What to expect after the online credit reservation is submitted through My Alabama Taxes (MAT):
- The donor will receive a confirmation number acknowledging the receipt of the reservation.
- The donor will receive a subsequent web notice from MAT notifying whether their donation has been approved or denied by the EDO.
- The donor will receive a letter from the Department of Revenue confirming their Growing Alabama Credit if the EDO confirms via ALDOR’s online system that the donation has been received, the project has been funded, and the project will be undertaken.
Procedures for Economic Development Organizations
An Economic Development Organization (EDO) must have a My Alabama Taxes (MAT) account before the Alabama Department of Revenue (ALDOR) can add the EDO’s approved project in the online reservation system. Once ALDOR opens the online reservation for the EDO project, the EDO will receive a web notice notifying them that the online reservation is open and available to the donors willing to make contributions through the online reservation system.
Steps required to be taken by the EDO:
- Create a MAT account so that ALDOR can open the online project reservation to receive donations.
- The EDO has 60 days from the date the project is added to the online system to confirm that the taxpayer’s donation has been received, the project has been funded, and the project will be undertaken. The project will close 60 days from the date the project is added to the online system. Any reservations that have not been confirmed before the online reservation closes will automatically be denied.
Please be advised that it is the responsibility of the EDO to comply with the above steps as provided in the Growing Alabama Funding Agreement. If you have further questions, please contact the Office of Economic Development.