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  • What credits are required to be pre-certified through MAT?

What credits are required to be pre-certified through MAT?

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.

Related FAQs in Pass Through Entity, Tax Incentives

No. Section 11 of the act specifically states that no refunds will be granted or paid for tax years ending before January 1, 2020, related to the provisions of the act. As a result, no adjustments related to the decoupling from the federal changes to IRC Section 118 can be made to previously filed returns. No assessments will be issued, no refunds or credits will be granted, and no adjustment of any tax attributes such as Net Operating Losses can be made.

No. Section 11 of the act specifically states that no refunds will be granted or paid for tax years ending before January 1, 2020, related to the provisions of the act. As a result, no adjustments related to the decoupling from the federal GILTI provisions can be made to previously filed returns. No assessments will be issued, no refunds or credits will be granted, and no adjustment of any tax attributes such as Net Operating Losses can be made.

Yes. Act 2021-1 provides that “All business income shall be apportioned to this state by multiplying the income by the sales factor.” This apportionment formula will therefore apply to all income taxpayers with business income apportioned to this state for tax periods beginning on or after January 1, 2021, including those that are subject to the rules 810-27-1-.18.02 through 810-27-1-.18.07. For purposes of the single sales factor apportionment formula, these rules will continue to provide the appropriate procedures for these taxpayers to determine their sales that are attributable to Alabama.

The ONE SPOT system will allow returns to be filed with ACH Debit and ACH Credit method payments only. The system will not allow an ACH Debit taxpayer to complete their return filing without completing the necessary information to authorize the ACH Debit payment. The ACH Credit payment is separate from the ONE SPOT system and must be initiated by the taxpayer through their banking institution. Returns successfully submitted for ACH Debit and ACH Credit taxpayers will be exported to the local government.

Upon the completion of the Third Party Designation Form, ALDOR can provide the returns, payments and payment data files to the authorized third party administrator.