Alabama § 40-1-51 Requirements for Tax Credit Legislation; Taxpayer Reporting Requirements

Alabama Statutes

§ 40-1-51 — Requirements for Tax Credit Legislation; Taxpayer Reporting Requirements

Alabama § 40-1-51

Title 40Revenue and Taxation

Ch. 1General Provisions

This text of Alabama § 40-1-51 (Requirements for Tax Credit Legislation; Taxpayer Reporting Requirements) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 40-1-51 (2026).

Text

(a)Beginning in the 2024 Regular Session of the Legislature, all new tax credit legislation shall include the following:

(1)For every bill enacting a new tax credit, a tax credit performance statement which must state the legislative purpose for the new tax credit. The tax credit performance statement must indicate one or more of the following as the legislative purpose of the new tax credit: a. Tax credits intended to induce certain designated behavior by taxpayers. b. Tax credits intended to improve industry competitiveness. c. Tax credits intended to create or retain jobs. d. Tax credits intended to reduce structural inefficiencies in the tax structure. e. Tax credits intended to provide tax relief for certain businesses or individuals.

(2)A statement providing that new tax credits s

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(a) Beginning in the 2024 Regular Session of the Legislature, all new tax credit legislation shall include the following:
(1) For every bill enacting a new tax credit, a tax credit performance statement which must state the legislative purpose for the new tax credit. The tax credit performance statement must indicate one or more of the following as the legislative purpose of the new tax credit:
a. Tax credits intended to induce certain designated behavior by taxpayers.
b. Tax credits intended to improve industry competitiveness.
c. Tax credits intended to create or retain jobs.
d. Tax credits intended to reduce structural inefficiencies in the tax structure.
e. Tax credits intended to provide tax relief for certain businesses or individuals.
(2) A statement providing that new tax credits shall expire on the first day of the calendar year following the calendar year that is five years from the effective date of the tax credit. With respect to any new property tax exemption, the exemption does not apply to taxes levied for collection beginning in the calendar year following the calendar year that is five years from the effective date of the tax credit.
(3) A statement establishing the limit on the amount of tax credits that may be provided during any applicable period of the tax credit.
(4) A statement limiting the number of years for carryforward of unused credits to no more than five years.
(5) A statement limiting the transfer or sale of tax credits.
(b) For tax years beginning after December 31, 2024, taxpayers claiming a new tax credit shall report the amount of the tax credit claimed by the taxpayer in accordance with the taxpayer’s regular tax reporting duties to the Department of Revenue. The amount of the tax credit claimed shall be considered as confidential taxpayer information, and the Department of Revenue shall not be required under this section to disclose confidential information.
(c) The term tax credit as used in this section shall mean a credit allowed against the amount of tax imposed by Chapter 16 or Chapter 18.