Prerequisite for reserving a Rural Hospital Investment Tax Credit:

• An active My Alabama Taxes account for the taxpayer who will utilize the credit. If you need assistance creating a My Alabama Taxes account or are unsure which account the credit should be associated with, email incentives@revenue.alabama.gov.

Procedures for making an online Rural Hospital Investment Tax Credit:

• Visit My Alabama Taxes and enter your credentials to log in.
• Navigate  to the appropriate tax account for the taxing entity as follows:
  • Individual Income Tax for individuals.
  • Business Income Tax for corporations.
  • Pass-Through Entity for pass-through entities.
  • Fiduciary Tax for fiduciaries.
  • Financial Institution Excise Tax for financial institutions.
  • Business Privilege Tax or Withholding Tax for insurance companies.
  • Utility Gross Receipts Direct Pay Permit to apply the credit against utility gross receipts taxes paid.
• Once the appropriate tax type is located, select Manage Tax Incentives under Tax Incentives.
• Locate the Rural Hospital Investment Tax Credit box and select Reserve a Rural Hospital Investment Tax Credit Donation.
• Account Verification: The donation reservation must be submitted under the My Alabama Taxes account and tax type associated with the taxpayer who will claim the credit. Confirm that the reservation is being made for the account and tax type that will utilize the credit and select Next.
• Contact Information: Enter contact information for the individual that will be managing the donation. Select Next.
  • The contact information entered in this step will be provided to the hospital or third-party entity to which you direct your donation.
• Organization Selection: To make a specified donation, choose Eligible Rural Hospital. To make an unspecified donation, choose Third Party Entity. Select Next.
• Donation: Locate the hospital(s) or third party(s) to which you wish to donate and enter your donation in the Donation Amount column.
  • Hospital donations: Hospitals that have not reached their annual funding cap are listed alphabetically. Multiple pages may exist depending on the number of hospitals that have not reached their cap. To view hospitals that have reached their annual cap, select Show History.
• Review Submission: Review the Terms and Conditions and verify that donation amounts are accurate, and that each donation is directed to the correct hospital or third-party entity. Submit your request once you have confirmed that all information is accurate.

What to expect after the donation reservation is submitted:

• A reservation confirmation will be sent to the donor’s My Alabama Taxes account.
• The donor must make a monetary donation directly to the designated hospital or third party entity within 30 days of the online reservation date.
  • Donations are not made through My Alabama Taxes. How the check/cash is transmitted is at the discretion of the donor and hospital or third party.
  • Donors may choose to contribute an amount greater than the reserved amount, however, no credit will be awarded for the portion of the donation that exceeds the reservation amount.
• The designated hospital or third-party entity must verify receipt of the monetary donation through My Alabama Taxes within 60 days of the donor’s reservation date. A credit will not be awarded until the donation is verified.
• The donor will receive a My Alabama Taxes web notice once the donation is approved or denied by the hospital or third party.
• The donor will receive an award letter from ALDOR if the donation is verified by the hospital or third party.
• The award letter will include the amount of credit awarded to the donor and the tax year in which the credit can be utilized.
• Non-electing pass-through entities awarded a credit must submit a second credit claim through My Alabama Taxes to pass the credit to its owners. Procedures for this process are available below under Additional Resources.
• The status of all donations and all pertinent donation information can be viewed by logging in to My Alabama Taxes and clicking Rural Hospital Contribution Status under Tax Incentives in the Other Actions tab.

Additional Resources

• Procedures for Submitting a Credit Claim – Non-Electing Pass-Through Entities Only
• My Alabama Taxes
• My Alabama Taxes FAQs