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Investment Credit

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  3. Investment Credit

Investment Credit

The Investment Credit is part of the Alabama Jobs Act of 2015 .

  • Act 2015-027
  • Title 40, Chapter 18, Article 16, Sections 40-18-370 through 40-18-383
  • Schedules AJA, NTC, BC, EC, and PC.
  • Can be used to offset Income, FIET, Insurance Premium, Utility, or a combination of the aforementioned taxes.
  • Credit may not exceed the taxpayer’s liability for the tax year.
  • Unused credit amounts may be carried forward for up to 5 years.
  • Replaces both the Capital Credit, Made In Alabama Credit, and the Tariff Credit. No entity has qualified for the Tariff Credit, so there should be no Tariff Credits allowed on any returns for any years.
  • The investment incentive is a credit of up to 1.5% of the qualified capital investment expenses for a qualifying project for up to 10 years. This credit can be taken against the Alabama income tax liability and/or utility tax liability.
  • For companies in a targeted county selling their output within 50 miles, the credit is available for up to 15 years.
  • Investment Credit may be carried forward for 5 years.
  • At the discretion of the Alabama Department of Commerce, the Investment Credit may be transferable for the first 3 years to generate cash for the project. Investment Credit transfers must be at least 85% of face value and must be approved by the Alabama Department of Commerce.