Procedures for Claiming the Capital Credit
The Annual Report for the Capital Credit (Form AR) is required to be submitted online through My Alabama Taxes each year for qualifying capital credit projects. Paper filing of the Annual Report is no longer available. Additionally, separate annual reporting procedures are now in place for entities that are organized as pass-through entities and C-corporations.
- Form AR-PTE: All project entities that are organized as pass-through entities must file Form AR-PTE. The new process requires the pass-through entity to submit the AR-PTE through My Alabama Taxes. Once the online submission has been reviewed, the pass-through entity will be notified whether the annual requirements have been met.
NOTE: The new system for processing credits will require the pass-through entity to submit the Form K-RCCs through My Alabama Taxes under the Credit Claim once the Form AR-PTE is approved.
- Form AR-C: All project entities organized as C-Corporations or financial institutions must file Form AR-C. The Form AR-C replaces the Form AR and Form K-RCC; as such, the Alabama income tax liability for the tax year in question must be known and included in the submission of the Form AR-C. Therefore, the Form AR-C should be submitted through My Alabama Taxes at the time of filing of the income tax return. The income tax return must be filed according to the normal filing requirements.
NOTE: All Capital Credit related transactions must go through My Alabama Taxes, and all involved parties must have a My Alabama Taxes account before moving forward in this procedure.