On Thursday, April 25, Gov. Kay Ivey signed into law House Bill 187, now Act 2024-113. We thank Governor Ivey for her support of this bill, as well as the Department of Revenue and Commissioner Barnett for their efforts...more
In 2021, the Alabama Legislature unanimously enacted an elective pass-through entity tax (PTE Tax) as a workaround to the so-called “SALT Cap,” which was part of the Tax Cuts and Jobs Act of 2017. The Alabama Electing...more
7/12/2023
/ Alabama ,
Department of Revenue ,
Income Taxes ,
IRS ,
Pass-Through Entities ,
PTEs ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Returns
Readers may recall that the Alabama Legislature unanimously enacted an elective pass-through entity tax (PTE Tax) last year as a workaround to the so-called “SALT Cap,” which was part of the Tax Cuts and Jobs Act of 2017. The...more
6/27/2022
/ Alabama ,
Income Taxes ,
IRS ,
Local Taxes ,
Pass-Through Entities ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Returns
Earlier this year, Alabama became one of 19 or so states to enact a pass-through entity tax as a workaround to the so-called "SALT Cap" enacted as part of the Tax Cuts and Jobs Act of 2017, which limits the deductibility of...more
11/15/2021
/ Alabama ,
Department of Revenue ,
Income Taxes ,
IRS ,
Local Taxes ,
Pass-Through Entities ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Returns ,
U.S. Treasury
The Alabama Legislature was stymied last year over proposals to decouple from or conform with various provisions of the Tax Cuts and Jobs Act of 2017 (TCJA). As a compromise, the Legislature formed a Joint Legislative Task...more
2/21/2020
/ Department of Revenue ,
Federal Agency Taskforce ,
Information Reports ,
Internal Revenue Code (IRC) ,
Legislative Agendas ,
Pass-Through Entities ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Rates
On December 16, the Internal Revenue Service (IRS) and the Treasury Department issued proposed regulations... that provide some good news and needed clarification for C corporations, individuals, and S corporations and other...more
12/19/2019
/ C-Corporation ,
Charitable Donations ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Pass-Through Entities ,
Popular ,
Proposed Regulation ,
PTEs ,
S-Corporation ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
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
Bedliner Chemicals Represent a Taxable Sale to the Franchisee Rather than to the Customer -
For those of you with bedliners in your trucks or other vehicles, a recent decision from the Alabama Tax Tribunal indicates you...more
Now that the Treasury Department and Internal Revenue Service have issued ?nal regulations to address at least some variations of so-called ‘‘SALT cap workarounds’’ to the Tax Cuts and Jobs Act’s limitation on individual...more
Now that the dust has settled following the issuance of the final “SALT cap workaround” regulations by the Treasury Department, here’s a summary of those regulations, the IRS guidance issued in connection with the final...more
7/15/2019
/ C-Corporation ,
Charitable Donations ,
Final Rules ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
New Guidance ,
Pass-Through Entities ,
Proposed Regulation ,
PTEs ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State and Local Government ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
In a 5-3-1 decision, the Alabama Supreme Court ruled on Friday that the sale of computer software in Alabama is subject to sales or use tax, even if it’s customized in whole or in part for a particular user (see Ex parte...more
In a case of first impression, an Alabama circuit court recently ordered a taxpayer to pay the auditing fees that a private auditing firm normally would charge to its local government clients. Initially, the court ordered the...more
Just before Christmas, the influential Public Affairs Research Council of Alabama (PARCA), the nonpartisan think tank headquartered at Samford University, released its annual report, How Alabama Taxes Compare. The contents...more
Sometimes the law of unintended consequences is difficult to correct after the fact. The most recent example may be the 2017 Tax Cuts and Jobs Act’s $10,000 annual limitation on state and local tax deductions claimed by...more
1/4/2019
/ C-Corporation ,
Charitable Donations ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Pass-Through Entities ,
Proposed Regulation ,
PTEs ,
S-Corporation ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
On October 29, the well-respected Public Affairs Research Council of Alabama (PARCA), headquartered at Samford University, issued a useful report finding Alabama’s “booming economy” had generated substantially increased tax...more
11/1/2018
/ Budget Surplus ,
Economic Development ,
ETFs ,
Federal Taxes ,
General Fund ,
Income Taxes ,
Sales & Use Tax ,
SALT ,
State Constitutions ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Liability ,
Tax Reform ,
Tax Revenues
In a case of first impression by an Alabama appellate court, the Alabama Court of Civil Appeals recently considered the appeal of the Alabama Department of Revenue (ADOR) of an adverse circuit court ruling involving whether...more
9/14/2018
/ Appeals ,
Business Taxes ,
Check the Box Rules ,
Department of Revenue ,
Income Taxes ,
Limited Liability Company (LLC) ,
Sales & Use Tax ,
SALT ,
Standing ,
Tax Assessment ,
Tax Tribunal
Gov. Kay Ivey signed House Bill 384, into law last Wednesday, March 28, ending a debate that has lasted for almost a decade over the scope of the individual income tax credit for certain taxes paid to other states. ...more
Many predicted that the 2018 regular session of the Alabama Legislature would be less eventful than in years past since members of the House of Representatives and Senate are up for re-election this year, and most lawmakers...more
3/20/2018
/ Delinquency Status ,
Hiring & Firing ,
Income Taxes ,
Legislative Agendas ,
Local Taxes ,
Municipal Taxes ,
Proposed Legislation ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Amnesty ,
Tax Credits ,
Tax Deductions ,
Veterans
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
Last spring, the Alabama Legislature passed the landmark Alabama Taxpayer Fairness Act, Act # 2014-146, the modified successor to a bill long known as the Alabama Taxpayers’ Bill of Rights II (“TBOR II”). Although the lengthy...more
The Alabama Historical Commission has issued emergency regulations to implement the state’s new historic structures rehabilitation tax credit. Emergency Rules 460-x-23-.01ER through 460-x-23-.13ER took effect September 1,...more