Upon receipt of the Innovating Alabama Tax Credit award letter from ALDOR, pass-through entities must submit a credit claim through My Alabama Taxes to pass the credit to its owners. The owners of a pass-through entity will not be allowed to claim the Innovating Alabama Tax Credit if the following procedures are not completed by the pass-through entity.

• Login to My Alabama Taxes.
  • Once logged in, navigate to the Pass-Through Entity.
  • Click on the ‘Submit a Credit Claim’ link under “Tax incentives’ and
    complete the following required fields:
    • Credit Type – Select “Innovating Alabama Tax Credit” from the
      drop-down menu.
    • Filing Period – Enter the tax period in which the Innovating
      Alabama Tax Credit is being claimed.
    • Credit Amount – Enter the amount of the Innovating Alabama
      Tax Credit as provided in the Innovating Alabama Award letter
      from ALDOR.
    • Provide the owner(s) information as requested under
      ‘Owners.’ Entities with numerous partners can select
      “Download Owner Information Spreadsheet” to enter owner
      information and percentage of ownership. Once downloaded,
      save the file. Then use the Import Tab to load the table in the
      credit claim. For future claims, you can modify the
      spreadsheet as needed (i.e., adding/deleting partners or
      changing ownership percentage).
    • Attachments – Attach the Innovating Alabama Credit award
      letter from ALDOR and any other pertinent information you’d
      like to include.
    • Please review the information in full (and print a copy for your
      records). Once reviewed, submit the credit claim.

Once the Innovating Alabama Tax Credit claim is submitted through My Alabama Taxes, ALDOR will review the claim. The Office of Economic Development may require additional information if the supporting documents are incomplete or not provided. Please note that lack of proper documentation to support the credit claim will delay the process.

When ALDOR reviews the requested credit claim, the pass-through entity will be sent a web notice letting them know whether the credit claim submission has been approved or denied. If the credit claim submission is approved, the owners will be sent the Innovating Alabama Credit award letter notifying them of the amount of credit they are entitled to claim on their income tax returns. The approved amount of the credit must be listed on the taxpayer’s income tax return at the time the return is filed. For more information, email incentives@revenue.alabama.gov or call 334-353-9789.