Prerequisites for qualified taxpayers claiming the Alabama Workforce Housing Tax Credit through My Alabama Taxes:
- A letter from ALDOR directing to submit a credit claim or allocation schedule via My Alabama Taxes. ALDOR’s letter is initiated by the allocation of the credit from the incentivized company (or allocating entity) receiving the tax credit certification.
Please note that if you are not a pass-through entity, then you will claim the credit on your return as follows:
- Business Income Tax (BIT) Taxpayers: Report the credit on Form 20C using Schedule BC to apply the credit against your business income taxes.
- Individual Income Tax (IIT) Taxpayers: Report the credit on your individual income tax return using Schedule OC to apply the credit.
- Financial Institution Excise (FIE) Taxpayers: Report the credit on Form ET-1 using Schedule EC to apply the credit against your financial institution excise taxes.
- Fiduciary (FDT) Taxpayers: You may either: (a) claim the credit by reporting it on Form 41 using Schedule FC to apply it against taxes due by the fiduciary; or (b) pass the credit to your beneficiaries by logging into your My Alabama Taxes account, selecting the “FDT” account type, and under “I Want To” choose “Submit a Credit Claim.” Once completed, report the credit on Schedule FC and on the beneficiaries’ Schedule K1(s) when filing the Form 41.
Procedures for Pass-Through Entities submitting a credit claim or allocation schedule online through My Alabama Taxes:
- Log in to My Alabama Taxes.
- Once logged in, navigate to the Pass-Through Entity tax under the Accounts tab.
- Click on the ‘Submit a Credit Claim’ link under the ‘Tax Incentives’ box and complete the following required fields:
- Credit Type – Select “Alabama Workforce Housing Credit” from the dropdown menu.
- Filing Period – Enter the tax year in which the apprenticeship credit is being claimed.
- Credit Amount – Enter the amount of the tax credit to be claimed or allocated.
- Owner Information (For pass-through entities only) – Must enter the owner information. See Note below.
NOTE: Pass-through entities with numerous partners can select “Download Owner Information Spreadsheet,” enter the owner’s information and percentage of ownership, and save the file. Once saved, use the “Import” tab to load the table in the credit claim. You can save the file for future claims and modify the spreadsheet as needed (i.e., add/delete owners, change ownership percentage).
Once ALDOR approves the credit claim request, the taxpayer submitting the claim will receive a web notice confirming the credit claim has been approved.