Individual taxpayers needing assistance with the credit claim process or who have questions about available tax credits should call the Individual Income Tax Audit and Appeals Division at 334-353-9770.

Individuals that have a My Alabama Taxes account should complete the following steps:

• Log in to using your user ID and password.
• Scroll to the Individual Income Tax portion of the page and select “Submit a Credit Claim” located in the Tax Incentives box.
• Enter the information requested for the credit claim: Credit Type, Filing Period, Credit Amount, and upload attachments (include documentation received to verify the authorization of the credit). Select “Next.”
• Review the information entered in Step 4. Select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

Individuals that do not have a My Alabama Taxes account and are unable to create one should complete the following steps:

• Go to the My Alabama Taxes homepage (www.myalabamataxes.alabama.gov).
• Scroll to the “Individuals” box and click “Submit an Individual Credit Claim.”
• Enter the requested taxpayer information: full legal name, Social Security number, email address, and contact number. Select “Next.”
• Enter the requested information for the credit claim: Credit Type, Filing Period, Credit Amount Requested, and upload attachments (include documentation received to verify the authorization of the credit). Select “Previous” to return to Step 3 to edit the information or “Next” to review the credit claim.
• Review the information entered in Step 4. Select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

If the credit is from a Schedule K-1 issued by a pass through entity, the credit claim will be submitted by the pass-through entity, and no action is required by the individual. The credit claim must be submitted by the entity and approved by the Alabama Department of Revenue before the credit will be allowed on an individual’s income tax return. The pre-certification process must be completed by each entity that was allocated a credit until the credit is allocated to the individual claiming the credit. Additional information about credit pre-certification for pass-through entities can be found at https://revenue.alabama.gov/tax-incentives/.

These credits will be subject to an approval process when the tax return is filed claiming the credit. The following are credits that do not require pre-certification by an individual income taxpayer through My Alabama Taxes:

• Alabama Adoption Tax Credit
• Credit for Transferring from Failing Public School to Nonfailing Public or Nonpublic School
• Alabama Accountability Act Credit – Scholarship Granting Organization (SGO) portion*
• Investment Credit (Alabama Jobs Act)**
• Port Credit
• Credit for Taxes Paid to Other States
• Dual Enrollment Credit
• Growing Alabama Credit***
• Innovating Alabama Credit***
• Rural Physician Credit
• Alabama Enterprise Zone Act Credit
• Credit for Taxes Paid to a Foreign Country
• Income Tax Capital Credit

*Alabama Accountability Act Credit – Scholarship Granting Organization (SGO) portion - The process for reserving a donation to an SGO remains unchanged. Only pass-through entity filers are required to complete the new pre-certification process in My Alabama Taxes for donations made to an SGO when the Alabama Accountability Act Credit is passed through to its members.

**Investment Credit (Alabama Jobs Act) – The approval of this credit is managed through the Department of Commerce. Once the Department of Commerce has approved the annual certification, ALDOR will notify the investing company to complete an allocation schedule through My Alabama Taxes. See https://revenue.alabama.gov/tax-incentives/.

***Growing Alabama Credit and Innovating Alabama Credit – The process for reserving a donation to an EDO remains unchanged.

All credits that require pre-certification must be submitted through My Alabama Taxes. Individual filers can remit the necessary information through their individual income tax account in My Alabama Taxes, or by selecting the “Submit a Credit Claim” option from the “Other links” menu in My Alabama Taxes. The credits that require pre-certification by individual income tax filers are:

• Coal Credit
• Full Employment Act of 2011
• Veterans Employment Act – Employer Credit
• Veterans Employment Act – Business Start-up Expenses Credit
• Qualified Irrigation/Reservoir System Credit
• 2013 Alabama Historic Rehabilitation Tax Credit
• Apprenticeship Tax Credit
• 2017 Alabama Historic Rehabilitation Tax Credit
• Railroad Modernization Act of 2019
• Storm Shelter Credit
• Volunteer Emergency Responders Tax Credit
• Neighborhood Infrastructure Incentive Plan Credit*
• Alabama Film Rebate

*The Neighborhood Infrastructure Incentive Plan Credit – This credit expired in 2015. However, there may be some individual income tax filers that still qualify to claim this credit since there is a 10-year period over which the credit can be claimed.

Financial Institution Excise Tax filers needing assistance with the credit claim process and/or Financial Institution Excise Tax filers who have questions about available tax credits should call the Corporate Income Tax Section at (334) 242-1200.

1. Log into MAT using your User ID and Password.
2. Under the “Financial Institution Excise Tax” Account Type, click on "Submit a credit claim".
3. Enter the information requested for the credit claim: Credit Type, Filing Period, Credit Amount, and upload attachments (include documentation to verify the authorization of the credit). Select “Next.”
4. Review the information entered in Step 4, select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

These credits will be subject to an approval process when the tax return is filed claiming the credit.  The following are credits that do not require pre-certification through MAT:

Sales Tax Credit

New Markets Credit

Investment Credit (Alabama Jobs Act)*

*Investment Credit (Alabama Jobs Act) – The approval of this credit is managed through the Department of Commerce.  Once the Department of Commerce has approved the annual certification, the Alabama Department of Revenue will notify the investing company to complete an allocation schedule through MAT.  See Investment Credit.

For additional information on any of these tax credits, please visit the Department of Revenue’s website at: Income Tax Incentives.

All credits that require pre-certification must be submitted using your MAT Financial Institution Excise Tax Account.  The credits that require pre-certification are:

Full Employment Act of 2011

Veterans Employment Act – Employer Credit

2013 Alabama Historic Rehabilitation Credit

Apprenticeship Tax Credit

Income Tax Capital Credit*

*Income Tax Capital Credit – Project Entities submit the Annual Report (Form AR-C) through MAT under the tax period in which it will be utilized.  For Financial Institutions, the Annual Report and KRCC are now combined. See Income Tax Capital Credit.

Pass Through Entity filers (partnership, S-corporation, trusts and disregarded entities) needing assistance with the credit claim process and/or Pass Through Entity filers who have questions about available tax credits should call the Pass Through Entity Tax Section at (334) 242-1033.

• Log into MAT with the User ID and Password.
• Under the “Pass Through Entity” or “Fiduciary Tax” Account Type, click on "Submit a credit claim".
• Enter the information requested for the credit claim: Credit Type, Filing Period, Credit Amount, Owner Information, and upload attachments (include documentation received to verify the authorization of the credit). Select “Next.”
• Review the information entered in Step 4. Select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

Tip for entering Owner Information:  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). Notice to Fiduciary Filers: Any tax credits originating from an ownership interest in a Pass Through Entity (partnership, S-Corporation or disregarded entity) that flow through to a Fiduciary taxpayer will not need to be pre-certified by the Fiduciary tax filer unless the credit will flow through to the beneficiary or the Fiduciary is claiming the 2017 Alabama Historic Rehabilitation Tax Credit.

These credits will be subject to an approval process when the tax return is filed claiming the credit.  The following are credits that do not require pre-certification through MAT:

Enterprise Zone Credit

Alabama New Markets Development Credit

Alabama Accountability Act Credit – Scholarship Granting Organization (SGO) portion

Dual Enrollment Credit

Investment Credit (Alabama Jobs Act)*

Port Credit

Growing Alabama Credit

*Investment Credit (Alabama Jobs Act) – The approval of this credit is managed through the Department of Commerce.  Once Department of Commerce has approved the annual certification, Alabama Department of Revenue will notify the investing company to complete an allocation schedule through MAT.  See Investment Credit

Any tax credits originating from an ownership interest in a pass through entity (partnership, S-Corporation or disregarded entity) that flow through to a business taxpayer will not need to be pre-certified by the business income tax filer.  The pass through entity is required to complete the pre-certification process prior to issuing the Schedule K-1 for any credits that require pre-certification before it reports the credit to its members on Schedule K-1.

For additional information on any of these tax credits, please visit the Department of Revenue’s website at:  Income Tax Incentives

All credits that require pre-certification must be submitted using your MAT Business Income Tax Account.  The credits that require pre-certification are:

Coal Credit

Full Employment Act of 2011

Veterans Employment Act – Employer Credit

Veterans Employment Act – Business Start-Up Expense Credit

Qualified Irrigation System / Reservoir System Tax Credit

2013 Alabama Historic Rehabilitation Tax Credit

Alabama Small Business and Agribusiness Jobs Act Credit

Apprenticeship Tax Credit

2017 Alabama Historic Rehabilitation Tax Credit

Alabama Film Rebate

Income Tax Capital Credit*

*Income Tax Capital Credit – Project Entities submit the Annual Report (Form AR-C) through MAT under the tax period it will be utilized.  For Corporations, the Annual Report and KRCC are now combined. See Income Tax Capital Credit

A disregarded entity receiving a credit from a Pass Through Entity will itself be required to create a Pass Through Entity Account in MAT and follow the pre-certification process for claiming a tax credit.These steps are necessary to ensure the Department’s records are updated to reflect the tax credit is available for the owner of the disregarded entity.To setup a Business Account in MAT, click here. Select “Obtain a New TaxAccount”, complete the registration questionnaire to setup a Pass Through Entity account.Once this information is processed a MAT Online Registration card will be mailed to the address on file that will allow the disregarded entity the ability to setup a MAT User ID and Password.

Business income tax filers needing assistance with the credit claim process and/or business income tax filers who have questions about available tax credits should call the Corporate Income Tax Section at (334) 242-1200.

1. Log into MAT using your User ID and Password.
2. Select the “Business Income Taxes” Account Type.
3. Under “I Want To” column select “Submit a credit claim.”
4. Enter the information requested for the credit claim: Credit Type, Filing Period, Credit Amount, and upload attachments (include documentation received to verify the authorization of the credit). Select “Next.”
5. Review the information entered in Step 4. Select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

These credits will be subject to an approval process when the tax return is filed claiming the credit.  The following are credits that do not require pre-certification through MAT:

Dual Enrollment Credit

Enterprise Zone Credit

New Markets Credit

Port Credit

Taxes Paid to Foreign Country

Taxes Paid to another State

For additional information on any of these tax credits, please visit the Department of Revenue’s website at: Income Tax Incentives

All credits that require pre-certification must be submitted using your MAT Business Income Tax Account.  The credits that require pre-certification are:

Coal Credit

Full Employment Act of 2011

Veterans Employment Act – Employer Credit

Veterans Employment Act – Business Start-Up Expense Credit

Qualified Irrigation System / Reservoir System Tax Credit

Alabama Accountability Act Credit - Scholarship Granting Organization (SGO) Portion *

2013 Alabama Historic Rehabilitation Tax Credit

Investment Tax Credit (Alabama Jobs Act) **

Apprenticeship Tax Credit

2017 Alabama Historic Rehabilitation Tax Credit

Railroad Modernization Act of 2019

Alabama Film Rebate

Income Tax Capital Credit ***

*Alabama Accountability Credit –SGO Portion - The process for making contributions to an SGO will be handled in the same manner as in previous years.However, Pass Through Entities (partnerships, S-Corporations and disregarded entities) that pass an Alabama Accountability Act credit through to their members must complete the NEW pre-certification process through MAT after their contribution has been verified by the SGO.

**Investment Credit (Alabama Jobs Act) - The approval of this credit is managed through the Department of Commerce.Once the Department of Commerce has approved the annual certification, the Alabama Department of Revenue will notify the investing company to complete an allocation schedule through MAT.Seehttps://revenue.alabama.gov/tax-incentives/major-tax-incentives/investment-credit/.

***Income Tax Capital Credit - Project Entities must now submit the Annual Report Form AR-PTE through MAT under the tax period in which it will be utilized.Once Form AR-PTE is approved, the Pass Through Entity is required to Submit a Credit Claim Request on MAT to pass the credit to their Member/Partners.Please note the Credit Claim submission will not be processed until the Form AR-PTE has been submitted and approved by Alabama Department of Revenue’s Office of Economic Development.