(a)For the tax years beginning on and after January 1, 1995, every person that is doing business in Alabama, as a producer of coal mined in Alabama, shall be allowed a coal production credit to be used as provided in subsection (b) in the amount of one dollar ($1) per ton of increased production of coal over the previous year’s production of coal as set out herein. The tax credit shall be based on coal produced after January 1, 1995, provided the coal was mined in Alabama as certified by the producer of the coal. The amount of the total of credit in any one year shall be based on the number of tons of Alabama coal produced by the person in the year which exceeds the number of tons of Alabama coal produced by the person in calendar year 1994. In the event a person did not produce Alabama c
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(a) For the tax years beginning on and after January 1, 1995, every person that is doing business in Alabama, as a producer of coal mined in Alabama, shall be allowed a coal production credit to be used as provided in subsection (b) in the amount of one dollar ($1) per ton of increased production of coal over the previous year’s production of coal as set out herein. The tax credit shall be based on coal produced after January 1, 1995, provided the coal was mined in Alabama as certified by the producer of the coal. The amount of the total of credit in any one year shall be based on the number of tons of Alabama coal produced by the person in the year which exceeds the number of tons of Alabama coal produced by the person in calendar year 1994. In the event a person did not produce Alabama coal during calendar year 1994, the person must establish a base year by producing Alabama coal for 12 consecutive months. Thereafter, the person shall be eligible for the tax credit as specified in this subsection over the base year production.
(b) The coal production credit described in subsection (a) shall be used as follows:
(1) To offset the income taxes found in this chapter, or as an estimated tax payment of income taxes;
(2) To offset t
he taxes imposed by Sections 40-21-82 and 40-21-102; or
(3) To offset some combination of the foregoing, so long as the same credit is used only once.
(c)(1) The coal production credit may be claimed as a credit against the taxes in subsection (b) that are actually paid. In any one year, if the credit exceeds the amount of taxes that are owed by the person, the person may carry the credit forward. No carryforward shall be allowed for more than five years. Rules similar to those used for Section 40-18-15.2 shall be applied.
(2) A person that is taxed as a flow-through entity may allocate the coal production credit among some or all of the owners in any manner specified, regardless of whether the allocation follows rules similar to 26 U.S.C. § 704(b) and the regulations thereunder. The owners may then use their allocated share of the coal production credit to offset any of the taxes listed in subsection (b), as provided in subdivision (1). This subdivision shall be liberally construed to apply to multiple levels of companies, to allow the coal production credit to be used by those persons bearing the tax burdens of the production of coal in Alabama, and such companies shall include, but shall in no way be limited to, flow-through entities, employee stock ownership plans, mutual funds, real estate investment trusts, and it shall also apply to offset the income tax liability of employee/owners of a flow-through entity owned by an employee stock ownership plan trust.
(3)
Prior to claiming the coal production credit as provided in subdivision (c)(1), the person producing Alabama coal shall submit to the Department of Revenue a certification as to the amount of increased production of coal for the calendar year over the previous year’s production of coal. Following such examination as it deems necessary, the Department of Revenue shall allow the coal production credit.
(d) The coal production tax credit shall be subject to the reporting requirements of Section 40-1-50.