Section 40-18-18 – Amortization of War or Emergency Facilities.
Section 40-18-18 Amortization of war or emergency facilities. Repealed by Act 98-502, § 2. (Acts 1943, No. 470, p. 434.)
Section 40-18-19 – Exemptions – Generally.
Section 40-18-19 Exemptions – Generally. THIS SECTION WAS AMENDED BY ACT 2022-294 IN THE 2022 REGULAR SESSION, EFFECTIVE JULY 1, 2022. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. (a) The following exemptions from income taxation shall be allowed to every individual resident taxpayer: (1) Retirement allowances, pensions and annuities, or optional allowances, approved by […]
Section 40-18-19.1 – Exemptions for Severance, Unemployment Compensation, Etc.
Section 40-18-19.1 Exemptions for severance, unemployment compensation, etc. (a) Effective for the 1997 state income tax year and through tax year ending December 31, 2019, an amount up to twenty-five thousand dollars ($25,000) received as severance, unemployment compensation or termination pay, or as income from a supplemental income plan, or both, by an employee who, […]
Section 40-18-19.2 – Exemption of Certain Death Benefit Payments for Peace Officer or Fireman Killed in Line of Duty.
Section 40-18-19.2 Exemption of certain death benefit payments for peace officer or fireman killed in line of duty. (a) Effective for the 2006 state income tax year and each year thereafter, any death benefit payments listed in subsection (e) that are paid to the designated beneficiary of a peace officer or fireman killed in the […]
Section 40-18-2 – Levied; Persons and Subjects Taxable Generally.
Section 40-18-2 Levied; persons and subjects taxable generally. (a) In addition to all other taxes now imposed by law, there is hereby levied and imposed a tax on the taxable income, as defined in this chapter, which tax shall be assessed, collected, and paid annually at the rate specified herein and for each taxable year […]
Section 40-18-2.1 – Income of Foreign Missionary Exempt.
Section 40-18-2.1 Income of foreign missionary exempt. All income earned from any missionary service rendered by a foreign missionary while he or she is physically present in a foreign country or countries for a minimum of 24 months and is employed or appointed by a church or other like religious organization is hereby exempted from […]
Section 40-18-20 – Exemptions – Military Retirement Benefits.
Section 40-18-20 Exemptions – Military retirement benefits. (a) The first $4,750 retirement or compensation received as retirement benefit from the military services by any person retired from the military services of the United States of America and survivor benefits derived therefrom is hereby exempt from any state, county or municipal income tax or like tax […]
Section 40-18-21 – Credits for Taxes Paid on Income From Sources Outside the State and for Job Development Fees.
Section 40-18-21 Credits for taxes paid on income from sources outside the state and for job development fees. (a)(1) For the purpose of ascertaining the income tax due under the provisions of this chapter by individual residents of Alabama whose gross income, as defined herein, is derived from sources both within and outside the State […]
Section 40-18-21.1 – Annual Report of Credits Claimed for Taxes Paid to Foreign Countries.
Section 40-18-21.1 Annual report of credits claimed for taxes paid to foreign countries. The Department of Revenue shall report annually to the Legislature the extent to which credits for taxes paid to foreign countries are claimed during the preceding tax year. The report shall be due on the fifth legislative day of each regular session […]
Section 40-18-22 – Taxpayers Engaged in Multistate Business – Allocation and Apportionment of Deductions and Exemptions.
Section 40-18-22 Taxpayers engaged in multistate business – Allocation and apportionment of deductions and exemptions. Taxpayers, including corporations, as well as subchapter K entities and Alabama S corporations, engaged in multistate business in such a manner as to subject their income to allocation and apportionment provided by the Multistate Tax Compact shall allocate and apportion […]
Section 40-18-23 – Taxpayers Engaged in Multistate Business – Option of Certain Taxpayers to Report and Pay Tax on Basis of Percentage of Volume.
Section 40-18-23 Taxpayers engaged in multistate business – Option of certain taxpayers to report and pay tax on basis of percentage of volume. Any taxpayer who has taxable income from business activities both within and without this state, whose only business activities within this state consist of sales and do not include owning or renting […]
Section 40-18-24 – Taxation of Subchapter K Entity.
Section 40-18-24 Taxation of subchapter K entity. (a) The amount of income, deduction, gain, loss, or credit includable or deductible by an owner of an interest in a subchapter K entity shall be determined in accordance with subchapter K of the Internal Revenue Code, 26 U.S.C. §§ 701-761. (b) For purposes of computing its net […]
Section 40-18-24.1 – Composite Return and Payment by Nonresident Owner of Subchapter K Entity.
Section 40-18-24.1 Composite return and payment by nonresident owner of subchapter K entity. Repealed by Act 2009-144, p. 268, §12, effective January 1, 2009. (Act 2001-1105, 4th Sp. Sess., p. 1169, §1.)
Section 40-18-24.2 – Taxation of Pass-Through Entities.
Section 40-18-24.2 Taxation of pass-through entities. (a) For purposes of this section and Section 40-18-24.3, the following terms shall have the following meanings: (1) MEMBER. An individual, estate, trust or business trust as defined in Section 40-18-1, a corporation as defined in Section 40-18-1, or Subchapter K entity as defined in Section 40-18-1, that is […]
Section 40-18-24.3 – Taxation on Distributive Share of Interest, Dividends, etc., of Nonresident Member of Qualified Investment Partnership.
Section 40-18-24.3 Taxation on distributive share of interest, dividends, etc., of nonresident member of qualified investment partnership. (a) Notwithstanding any other provision of this chapter to the contrary, including Sections 40-18-2 and 40-18-24.2, no income tax shall be due the State of Alabama from a nonresident member of a qualified investment partnership, or from the […]
Section 40-18-24.4 – Alabama Electing Pass — Through Entity Tax Act.
Section 40-18-24.4 Alabama Electing Pass — Through Entity Tax Act. (a) This section shall be known and may be cited as the, “Alabama Electing Pass-Through Entity Tax Act.” (b) For the purposes of this section, “electing pass-through entity” means any Alabama S corporation, as is defined by Section 40-18-160, and any subchapter K entity, as […]
Section 40-18-24.5 – Refundable Credit for Certain Owners, Members, Partners, or Shareholders of Electing Pass-Through Entities.
Section 40-18-24.5 Refundable credit for certain owners, members, partners, or shareholders of electing pass-through entities. (a) Notwithstanding any other provision of Chapters 16 and 18 of this title to the contrary, for tax years beginning on or after January 1, 2021, any owner, member, partner, or shareholder of an electing pass-through entity shall report its […]
Section 40-18-25 – Estates and Trusts.
Section 40-18-25 Estates and trusts. (a) For purposes of this chapter, the income and deductions, including the distribution deduction, of estates and trusts shall be determined in accordance with Subchapter J of Chapter 1 of Subtitle A of the Internal Revenue Code, 26 U.S.C. §641 et seq., relating to estates, trusts, beneficiaries, and decedents, except […]
Section 40-18-25.1 – Estates and Trusts – Exemptions.
Section 40-18-25.1 Estates and trusts – Exemptions. (a) Trusts shall be exempt from the tax imposed by this chapter if they are exempt from federal income tax under 26 U.S.C. § 501 (relating to exempt organizations), § 401 (relating to pension and profit sharing trusts), § 408 and § 408A (relating to individual retirement accounts […]
Section 40-18-25.2 – Estates and Trusts – Deductions From Gross Income of Net Operating Loss.
Section 40-18-25.2 Estates and trusts – Deductions from gross income of net operating loss. (a) Nothing in Act 2006-114 shall be construed to change or otherwise affect a taxpayer’s liability relating to a tax year beginning prior to the effective date of Act 2006-114. (b) Should: (1) any trust which is described in Section 40-18-25(b), […]