Alabama § 40-18-160 General Provisions

Alabama Statutes

§ 40-18-160 — General Provisions

Alabama § 40-18-160

Title 40Revenue and Taxation

Ch. 18Income Taxes

Art. 6Alabama S Corporations

This text of Alabama § 40-18-160 (General Provisions) 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 § 40-18-160 (2026).

Text

(a)An Alabama S corporation shall not be subject to the tax imposed by Section 40-18-31.

(b)For purposes of this chapter, an “Alabama S corporation” is a corporation:

(1)With respect to which an election under 26 U.S.C. §1362 is in effect; or

(2)a. With respect to which there is in effect an election under 26 U.S.C. §1361(b)(3) to treat such corporation as a qualified subchapter S subsidiary; and b. All the stock of which is owned by an S corporation qualifying as an “Alabama S corporation” under subdivision (b)(1). No corporation shall be an Alabama S corporation for any portion of a taxable year of the corporation during which an election under 26 U.S.C. §1362 or §1361(b)(3), whichever is applicable, is not in effect for federal income tax purposes. No corporation shall be an Alabama

Free access — add to your briefcase to read the full text and ask questions with AI

(a) An Alabama S corporation shall not be subject to the tax imposed by Section 40-18-31.
(b) For purposes of this chapter, an “Alabama S corporation” is a corporation:
(1) With respect to which an election under 26 U.S.C. §1362 is in effect; or
(2)a. With respect to which there is in effect an election under 26 U.S.C. §1361(b)(3) to treat such corporation as a qualified subchapter S subsidiary; and
b. All the stock of which is owned by an S corporation qualifying as an “Alabama S corporation” under subdivision (b)(1).
No corporation shall be an Alabama S corporation for any portion of a taxable year of the corporation during which an election under 26 U.S.C. §1362 or §1361(b)(3), whichever is applicable, is not in effect for federal income tax purposes. No corporation shall be an Alabama S corporation if it is a financial institution, as defined in Section 40-16-1.
(c) For purposes of this chapter, an “Alabama C corporation” means any corporation other than an Alabama S corporation.
(d) With respect to a qualified subchapter S subsidiary for which there is in effect an election under 26 U.S.C. § 1361 (b)(3), all of its assets, liabilities, and items of income, deductions, and credit shall be treated as assets, liabilities, and such items, as the case may be, of the Alabama S corporation owning the stock of the qualified subchapter S subsidiary.

Legislative History

(Code 1975, §40-14-90; Acts 1984, 1st Ex. Sess., No. 84-756, p. 121, §1; Acts 1985, No. 85-515, §3; Acts 1989, No. 89-837, p. 1671, §1; Acts 1997, No. 97-625, p. 1048, §3; Act 99-314, p. 423, §1.)