How is taxable income determined in your state? To what extent is the state income tax base aligned with the federal income tax base?
Alabama levies a corporate income tax on business entities classified as taxable or “C”...more
10/12/2020
/ C-Corporation ,
Corporate Taxes ,
Department of Revenue ,
Exemptions ,
Filing Requirements ,
Franchise Taxes ,
Income Taxes ,
Nexus ,
S-Corporation ,
State and Local Government ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Rates
The influential Business Council of Alabama (BCA), founded in 1985, and the Birmingham Business Alliance (BBA), the state’s oldest and largest chamber of commerce, have each officially approved their 2020 legislative agendas....more
12/10/2019
/ Affordable Care Act ,
Corporate Taxes ,
Economic Development ,
Income Taxes ,
Legislative Agendas ,
Opportunity Zones ,
Public Policy ,
SALT ,
State Budgets ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Incentives
As 2019 comes to a close, while most people are busy making holiday plans, dutiful tax advisors and financial planners are burning the midnight oil to minimize their clients’ tax bills that will be due in a few short months....more
12/5/2019
/ ABLE Accounts ,
Charitable Donations ,
Corporate Taxes ,
Federal Taxes ,
Income Taxes ,
IRS ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
Section 529 Program ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Liability ,
Tax Planning
On Tuesday night, May 28, Gov. Kay Ivey signed into law House Bill 419, the Alabama Financial Institution Excise Tax Reform Act of 2019 (FIETRA), which resulted from a collaborative effort between the banking community,...more
5/31/2019
/ Banking Sector ,
Corporate Taxes ,
Department of Revenue ,
Excise Tax ,
Federal Agency Taskforce ,
Federal Taxes ,
Financial Institutions ,
Governor Ivey ,
Income Taxes ,
New Legislation ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Planning ,
Tax Reform
As automotive suppliers begin work on their 2018 tax returns and implement plans for their capital expenditures in 2019, suppliers should look at a potential tax credit to help offset the costs of tooling: the Research and...more
2/20/2019
/ Automotive Industry ,
Capital Expenditures ,
Car Dealerships ,
Corporate Taxes ,
Economic Development ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Manufacturers ,
R&D ,
R&D Tax Credits
On July 31, the Alabama Department of Revenue (ADOR or Department) released its long-awaited and quite comprehensive analysis of the impact of the Tax Cuts and Jobs Act of 2017 (otherwise known as “federal tax reform”) on...more
9/5/2018
/ Corporate Taxes ,
Department of Revenue ,
Excise Tax ,
Federal Taxes ,
Financial Institutions ,
Foreign Earned Income ,
GILTI tax ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Pass-Through Entities ,
Proposed Regulation ,
S-Corporation ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Reform
On July 31, the Alabama Department of Revenue (ADOR) released its long-awaited “Analysis of Federal Tax Law Revisions on the State of Alabama,” a comprehensive review of the changes brought about by the Tax Cuts and Jobs Act...more
8/13/2018
/ C-Corporation ,
Corporate Taxes ,
Department of Revenue ,
Foreign Earned Income ,
GILTI tax ,
Governor Ivey ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Pass-Through Entities ,
Sole Proprietorship ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Exempt Entities ,
Tax Exemptions ,
Tax Reform ,
UBTI
With the Dec. 22 enactment of the federal Tax Cuts and Jobs Act, many Alabamians and companies doing business in our state should see a reduction in their 2018 federal income tax bills but, somewhat surprisingly, an increase...more
1/29/2018
/ Alternative Minimum Tax ,
Business Taxes ,
Charitable Donations ,
Corporate Taxes ,
Income Taxes ,
New Legislation ,
SALT ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
Tax Rates ,
Tax Reform ,
Trump Administration
The “Tax Cuts and Jobs Act” has passed both chambers of Congress and is expected to be signed by President Trump soon. Details of the final agreement among House and Senate Republicans include rate cuts for “C” corporations,...more
12/21/2017
/ Affordable Care Act ,
Business Taxes ,
Corporate Taxes ,
Income Taxes ,
Individual Mandate ,
International Tax Issues ,
Legislative Agendas ,
Local Taxes ,
Mortgage Interest ,
Pending Legislation ,
R&D Tax Credits ,
State Taxes ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
Details of a final agreement among House and Senate Republicans emerged last week -- including rate cuts for “C” corporations, individuals and pass-through businesses. Here’s a summary of what the conferees have agreed to,...more
12/18/2017
/ Affordable Care Act ,
Alternative Minimum Tax ,
Business Taxes ,
Corporate Taxes ,
Income Taxes ,
Individual Mandate ,
International Tax Issues ,
Legislative Agendas ,
Local Taxes ,
Mortgage Interest ,
Pass-Through Entities ,
Proposed Legislation ,
R&D Tax Credits ,
State and Local Government ,
State Taxes ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
Readers may recall that Alabama Act 2012-427 permitted Alabama residents that owned interests in multistate pass-through entities (e.g., LLCs, partnerships, and S corporations) to claim a credit against their Alabama income...more
Beginning June 30 and running through August 30, the Alabama Department of Revenue (ADOR) is offering many taxpayers an opportunity to come forward voluntarily and pay a litany of delinquent state and state-administered local...more
The Alabama Legislature adjourned sine die on May 4 bringing the 2016 Regular Session to an end. The 2017 Regular Session is scheduled to begin in February and there have been reports of a potential special session later in...more
5/17/2016
/ Apprenticeships ,
Captive Insurance Company ,
Contingency Fees ,
Corporate Taxes ,
Excise Tax ,
Hiring & Firing ,
Income Taxes ,
Insurance Industry ,
Legislative Agendas ,
Multistate Tax Commission (MTC) ,
Ports ,
Reporting Requirements ,
Shipping Cargo ,
Small Business ,
Tax Credits ,
Tax Rates
Last month, the ADOR proposed a new rule, Rule 810-3-35-.01, in order to simplify the federal income tax deduction available to corporations doing business in Alabama. The ADOR proposed to repeal the current corporate federal...more
The Alabama Department of Revenue (ADOR) recently proposed numerous changes to its apportionment rules for corporate income taxpayers, with the stated intention of adopting “recommended amendments to the [Multistate Tax...more
In preparation for the 2016 regular session, which begins on February 2, several of Alabama's key trade and business organizations recently announced their tax legislative agendas. As reflected in these agendas, the 2016...more
As you end your telephone conversation with the revenue examiner, you think to yourself, “Thank goodness, this one is finally over!” The audit of your biggest client started over three years ago, and has seemingly dragged on...more
This SALT Alert summarizes the major legislative, judicial, and administrative developments affecting Alabama business taxpayers with respect to income, transactional, and property taxes, as well as several updates on...more