Port Credit

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.  For additional information on the credit, please click here.

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 5 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 (MAT) 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.