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FAQ Categories: Filling Requirements

What types of interest income is taxable?

Interest income taxable for federal purposes, including interest from loans and discounts, obligations of the United States Government, and State, county, and municipal interest income from loans and securities that is exempt for federal income tax purposes.

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Does our financial institution have Nexus in Alabama?

Alabama Code § 40-18-31.2 creates the factor presence standard for business activity in the state to determine nexus for business income tax, business privilege tax and financial institution excise tax. The section stipulates that the threshold amounts may be adjusted periodically consistent with the Consumer Price Index. A financial institution

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What is Financial Institution Excise Tax?

The excise tax on financial institutions is levied to give effect to the provisions of federal law limiting the right of the states to tax national banking associations. It is not a tax on income but is an excise tax measured by income. The proceeds of the tax are distributed

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Who must file a Financial Institution Excise Tax return? (Form ET-1)

Any person, firm, corporation and any legal entity whatsoever doing business in this state as a national banking association, bank, banking association, trust company, industrial or other loan company or building and loan association, and such term shall likewise include any other institution or person employing moneyed capital coming into

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Does Alabama allow an extension of time to file?

Yes, if an extension has been granted for federal purposes, the extension is also granted for Alabama purposes; the applicable federal extension form must be submitted with Form ET-1/ET-1C. The Form ET-8 is no longer required to request an extension to file Form ET-1/ET-1C. NOTE: The full amount of the

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