2022 Code of Alabama
Title 40 - Revenue and Taxation.
Chapter 18 - Income Taxes.
Article 1 - General Provisions.
Section 40-18-60 - Covid-19 Recovery Capital Credit Protection Act of 2021.

Section 40-18-60

COVID-19 Recovery Capital Credit Protection Act of 2021.

This section shall be known and may be cited as the "COVID-19 Recovery Capital Credit Protection Act of 2021."

(b) For the purposes of this section the following terms shall have the assigned meanings:

(1) APPROVED PROJECT ENTITY. An entity that has filed a notice of intent with the department on or before January 1, 2016, and that has subsequently filed or will file a report of investment in project with the department to claim a capital credit under the Capital Credit Program.

(2) DEPARTMENT. The Alabama Department of Revenue.

(3) QUALIFYING PROJECT. A project that has been placed into service in calendar years 2019, 2020, or 2021.

(c)(1) The one-year period in which to satisfy the initial employment and wage requirements for an approved project entity shall be extended to a period not to exceed two years for any otherwise qualifying project placed into service in calendar years 2019, 2020, or 2021 that have been directly affected by the COVID-19 pandemic.

(2) An approved project entity's qualifying project, that fails to meet the annual employment and wage requirements for tax years beginning after December 31, 2019, but before January 1, 2022, will not be considered in the determination of disqualification from the capital credit program; provided that the COVID-19 pandemic is the primary cause of the disqualification.

(3) An approved project entity shall not be subject to certain forfeiture penalties imposed on qualifying projects that fail to maintain employment and wage requirements for any tax year ending before January 1, 2022. For tax years beginning on or after January 1, 2022, the applicable forfeiture penalty shall be equal to 100 percent of the capital credits claimed in the year immediately preceding the year in which the approved project entity fails to maintain the employment and wage requirements of this section. The forfeiture percentage shall be reduced to 20 percent for each successive prior year in the five-year forfeiture period.

(d) The department shall adopt rules for the implementation and administration of this section.

(Act 2021-240, §§1-3,5.)