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Pass-Through Entity Childcare Credit Claim

Tax Incentives >
  • Pass-Through Entity Childcare Credit Claim
More In Tax Incentives
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Procedures for Submitting a Childcare Credit Claim for Pass-Through Entities Only

Pass-Through entities who have been awarded a childcare credit (e.g., Employer Credit, Employer-Provider Credit, or Facility Credit) must submit a second credit claim through My Alabama Taxes to pass the credit to its owners. Important: Owners of a pass-through entity will not be permitted to claim the credit until the entity completes the following procedures.

  • Visit My Alabama Taxes and log in.
  • Navigate to Pass-Through Entity.
  • Select Submit a Credit Claim under Tax Incentives and complete the following fields:
    • Credit Type: Select the appropriate credit type from the drop-down menu (e.g., Employer Tax Credit, Employer-Provider Tax Credit, or Childcare Facility Tax Credit).
    • Filing Period: Enter the tax period in which the credit is being claimed.
    • Credit Amount: Enter the amount of credit which has been awarded.
    • Owners: Provide the owner(s) information as requested.
      • Entities with numerous partners can select “Download Owner Information Spreadsheet” to enter owner information and percentage of ownership. Once completed, save the file and use the “Import” link 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 any pertinent information here.
    • Review the information in full and print or save a copy for your records, then submit the credit claim.

What to expect after the credit claim is submitted:

  • Credit claims are reviewed by ALDOR in the order received. Processing times may vary depending on the volume of requests.
  • The pass-through entity will receive a notice in My Alabama Taxes after we review and approve the credit claim.
  • Owners of the pass-through entity will receive a letter from ALDOR containing details of the credit. The credit amount should be reported on the owner’s tax return when the return is filed.
  • If you have questions, email incentives@revenue.alabama.gov or call 334-353-9789.