Alabama Alabama Business Privilege Tax Initial Privilege Tax Return - Instructions

Alabama Business Privilege Tax Initial Privilege Tax Return - Instructions
BPT-IN Instructions TY 2024_6-14-23_F
FORM

BPT-IN
INSTRUCTIONS

InstructIons For the PreParatIon oF
alabama DePartment oF revenue

alabama business Privilege tax
Initial business Privilege tax return

2024

business entity. Do not enter the owner’s name or “doing business as” name.

What’s New for 2024

Line 3b. FEIN – The taxpayer’s Federal Employer Identification Number
(FEIN) is required to complete Form BPT-IN. Enter “applied for” if an FEIN will
be assigned to the taxpayer. Check the box (FEIN Not Required) if an FEIN will
not be assigned to the taxpayer and enter the BPT account number on Line 3c.
Single member limited liability companies should NOT use their owner’s
FEIN or Social Security Number.

Minimum Business Privilege Tax. Alabama Act 2022-252 amends
Section 40-14(A)-22. For taxable year 2024, taxpayers who would be subject to
the minimum tax of one hundred dollars ($100), do not have a filing requirement.
DO NOT FILE FORM BPT-IN AS AN ANNUAL RETURN
Section 40-14A-29, Code of Alabama 1975, requires newly organized corporations, limited liability entities, and disregarded entities to file an initial
Business Privilege Tax Return and to pay the business privilege tax reported
on the return within two and one-half months after date of qualification.

Line 3c. BPT Account Number – Enter the taxpayer’s BPT (Business
Privilege Tax) account number only if the taxpayer does not have an FEIN
(Federal Employer Identification Number). The account number is issued when
the account is opened and is provided in the notice advising the taxpayer of the
Business Privilege Tax liability. The account number is also provided in the letter notifying the taxpayer of a Sign-On ID and an Access Code for using the
Electronic Funds Transfer (EFT) System. Contact the Business Privilege Tax
Section (334-242-1170, option 8) for any questions regarding the BPT account
number.

Corporations, limited liability entities, and disregarded entities organized
outside of Alabama, but qualifying with the Alabama Secretary of State to do
business in Alabama, must file an Initial Business Privilege Tax Return and pay
the business privilege tax reported on the return within two and one-half months
after date of qualification.

Line 3d. Secretary of State Entity ID Number – Enter the Alabama
Secretary of State’s Entity ID Number. The entity ID number is obtained from
the Alabama Secretary of State’s website www.sos.alabama.gov or by contacting the Secretary of State’s office at (334) 242-5324.

Form BPT-IN, Initial Business Privilege Tax Return, is used to file an initial
return. Filing Form BPT-IN as an annual Business Privilege Tax Return could
result in a failure to timely file penalty.
The preparation of the Form BPT-IN differs from an annual return, as
follows:

Please enter the last nine digits of the Alabama Secretary of State’s Entity
ID number. Do not enter the Federal Employer Identification Number
(FEIN) of the entity or the Social Security Number of the owner.

1. Date of Qualification, Incorporation, or Organization – Line 2a of the
Form BPT-IN should be the date of incorporation or organization for corporations, limited liability entities, and disregarded entities organized in Alabama.
For corporations, limited liability entities, and disregarded entities organized
outside the State of Alabama, line 2a should be the date the entity qualified with
the Alabama Secretary of State to do business in Alabama or started doing
business in Alabama, whichever occurred first.

For example, if the Alabama Secretary of State’s Office has assigned a
domestic limited liability company the file number of DLL 999-999-999, the last
nine digits of the entity ID number (999999999) would be entered for Line 3d.
Line 3e. Federal Business Code Number (NAICS) – Enter the Federal
Business Activity Code Number to be reported on the taxpayer’s federal income
tax return. The federal activity codes are based on the North American Industry
Classification System (NAICS). NAICS information is available on the U.S.
Census Bureau’s website (www.census.gov) or by contacting the U.S. Census
Bureau (800-923-8282).

2. Apportionment Factor – The Financial Institution Group Member apportionment factor used on the initial return is based solely on the ratio of property
located in Alabama to total property owned by the taxpayer (which includes
property located outside of Alabama). For all other taxpayers, the apportionment factor used on the initial return should be the ratio of Alabama sales to
total sales. The apportionment factor is computed as of the date of organization, if organized in Alabama, or the date the entity qualified with the Alabama
Secretary of State, if a foreign entity.

Line 3f. Mailing Address – Enter the taxpayer’s mailing address or street
address.
Line 3g. City – Enter the taxpayer’s city.
Line 3h. State – Enter the taxpayer’s state.

3. Possible Short Taxable Year Proration of Privilege Tax – If the initial
return is for a short taxable year (the period of time between the date organized
or qualified and the last day of the taxable year is less than one year), the business privilege tax is prorated over the short period.

Line 3i. Zip Code – Enter the taxpayer’s 9-digit zip code.
Line 4a. Contact Person Concerning This Form – Enter the name of the
person who can answer questions concerning the preparation of this form.

Preparation Instructions:

Line 4b. Contact Person’s Phone Number – Enter the telephone number
of the person who can answer questions concerning the preparation of this
form.

Line 1a. through Line 1i. Type of taxpayer (check only one) – Indicate
the type of taxpayer by checking one of the boxes on line 1a through line 1i.

Line 4c. Taxpayer’s E-mail Address – Enter the entity’s e-mail address.

Line 2a. Date of Qualification, Incorporation, or Organization – Enter
the date the entity was incorporated or organized in Alabama. If the entity was
organized outside the State of Alabama, enter the date the entity qualified with
the Secretary of State to do business in Alabama.

Line 5a. County of Incorporation or Organization for All Alabama
Entities – Enter the Alabama county of incorporation or organization, if the entity was incorporated or formed in Alabama.
Line 5b. State or Country of Incorporation or Organization for All
Foreign Entities – Enter the state or country of incorporation or organization,
if the entity was not incorporated or formed in Alabama.

Line 2b. No Alabama Factor Presence Nexus – Check this box if the taxpayer is a foreign entity (organized or formed outside the State of Alabama) and
does not meet the Alabama Factor Presence Nexus thresholds. The taxpayer is
required to submit attachments to include an apportionment factor schedule and a
statement to confirm no Alabama Factor Presence Nexus.

Line 6a. Date of Qualification or Registration in Alabama for Foreign
Entities – Enter the date the entity qualified with the Alabama Secretary of
State to do business in Alabama.

Line 3a. Legal Name of Business Entity – Enter the legal name of the
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Line 6b. Date of Incorporation or Organization for All Entities – Enter
the date of incorporation or organization.

to be used in computing the amount of interest due (Section 40-1-44 references
Internal Revenue Code Section 6621 for the interest rates to be used for underpayments).

Line 6c. Date Started Doing Business in Alabama – Enter the date the
company started doing business in Alabama.

Line 17. Total privilege tax due – Add the amounts shown on lines 14, 15,
and 16.

Line 6d. Telephone Number of Taxpayer – Enter the telephone number
of the taxpayer’s primary office.

Line 7c. Street Address – Enter the street address or mailing address of
the registered agent.

Line 18. Family LLE Election Indicator – Check the box if the Family LLE
Election Schedule is completed and attached. The Family Limited Liability
Election must be made annually on or before the due date, including extensions, of the return in accordance with Section 40-14A-1(h)(2), Code of
Alabama 1975. Failure to attach Schedule BPT-E and sign Page 1 of Form
BPT-IN will result in the disallowance of the election. Single-member LLCs that
are treated as a disregarded entity for federal income tax purposes do not qualify as an electing family limited liability entity, in accordance with Section 4014A-1(h), Code of Alabama 1975.

Line 7d. City, State, and Zip Code – Enter the city, state, and zip code of
the registered agent.

Instructions for Form BPT-IN, Page 2

Line 8a. Name of Corporate President or Primary Member/Partner –
Enter the name of the current corporate president or primary member/partner.

Line 1a. FEIN – Enter the Federal Employer Identification Number (FEIN)
of the entity.

Line 8b. Social Security Number – Enter the Social Security Number of
the current corporate president or primary member/partner.

Line 1b. Legal Name of Business Entity – Enter the legal name of the
business entity as shown on page 1, line 3a.

Line 8c. Street Address – Enter the street address or mailing address of
the current corporate president or primary member/partner.

Line 1c. Date of Qualification, Organization, or Incorporation – Enter
the date of qualification, organization, or incorporation (same as line 2a on page
1 of Form BPT-IN).

Line 7a. Name of Registered Agent in Alabama – Enter the name of the
registered agent in Alabama. This form cannot be used to change the registered agent of a corporation.
Line 7b. FEIN or Social Security Number – Enter the FEIN or Social
Security Number of the registered agent.

Line 8d. City, State, and Zip Code – Enter the city, state, and zip code of
the current corporate president or primary member/partner.

Part A – Net Worth Computation:

Line 9a. Name of Corporate Secretary or Secondary Member/Partner –
Enter the name of the current corporate secretary or secondary member/
partner.

I. Corporations & Entities Taxed as Corporations
Line 1. Enter the total amount of the taxpayer’s capital stock and additional
paid in capital, but not less than zero. The amount must not be reduced for any
treasury stock owned by the corporation.

Line 9b. Social Security Number – Enter the Social Security Number of
the current corporate secretary or secondary member/partner.
Line 9c. Street Address – Enter the street address or mailing address of
the current corporate secretary or secondary member/partner.

Line 2. Enter the amount of Retained Earnings, but not less than zero.
Include any amounts designated for the payment of dividends until the amounts
are definitely and irrevocably placed to the credit of the stockholders, subject to
withdrawal on demand. If the taxpayer does not issue stock or if the taxpayer
is either a business trust or a limited liability entity taxed as a corporation for
federal tax purposes, enter the book value of the taxpayer’s assets minus liabilities, but not less than zero.

Line 9d. City, State, and Zip Code – Enter the city, state, and zip code of
the current corporate secretary or secondary member/partner.
Line 10. Kind of Business Done in Alabama – Please provide a brief
statement of the character of business in which the entity is engaged in the
State of Alabama.

Line 3. Enter the gross amount of related party debt exceeding the total of
the amounts entered on line 1 and line 2, as required by Section 40-14A-23,
Code of Alabama 1975. This amount will be added to the amounts on line 1
and line 2 in arriving at the taxpayer’s net worth. Related parties are defined in
Section 40-14A-1, Code of Alabama 1975, as any member of a controlled
group of corporations as defined by Internal Revenue Code Section 1563. The
definition of related parties also includes any limited liability entity that would be
a member of a controlled group if rules similar to Section 1563 were applied to
limited liability entities. Note: The amount entered on line 3 must not be less
than zero. Individual shareholders are not considered related parties. Related
party debt and related party receivables are not netted in any circumstances.
Exempt payables are defined as stated in Section 40-14A-23(e)(2)(b). They
include trade debt, accounts payable, or deposit liabilities to related parties that
are doing business in Alabama. Non-Exempt payables are all other related
party debts.

Line 11. Principal Place of Business in Alabama – Please provide the
address for the principal place of business in Alabama.
Line 12. Kind of Business Done Generally – Please provide a brief statement of the general character of business in which the entity is engaged.
Line 13. Principal Office and Place of Business if Outside the State of
Alabama – Please provide the mailing address for the principal place of business, if it is located outside of Alabama.
Line 14. Privilege tax due (Page 2, Part B, line 20) – Enter the amount
from page 2, Part B, line 20 (Privilege Tax Due). The Alabama Business
Privilege Tax is due, in full, by the original due date of the Initial Business
Privilege Tax Return.
Line 15. Penalty due – Enter the total amount of the penalty for failure to
timely file the return and the penalty for failure to timely pay the tax shown due
on the return, as specified in Section 40-2A-11, Code of Alabama 1975. The
penalty for failure to timely file an Alabama Business Privilege Tax Return by
the due date is 10% of the tax or $50, whichever is greater. The penalty for failure to timely pay the amount of tax shown due on an Alabama Business
Privilege Tax Return equals to 1% of the amount of tax shown due on the return
for each month the tax is unpaid – not to exceed 25% of the amount shown due
on the return.

Line 4. For the determination period, enter the excess amount (the amount
in excess of $500,000 for each shareholder) of compensation or similar
amounts paid to (or accrued as a liability to) certain direct or indirect shareholders, as defined in Section 40-14A-23, Code of Alabama 1975. This amount will
be added to lines 1, 2, and 3, in arriving at the taxpayer’s net worth. Section 4014A-23(f), Code of Alabama 1975, should be referred to for a more thorough
explanation of this adjustment.

Line 16. Interest due – Enter the amount of interest due on any Business
Privilege Tax unpaid as of the original due date of the Business Privilege Tax
Return. Section 40-1-44(a), Code of Alabama 1975, specifies the interest rate

Line 5. For the determination period, enter the excess amount (the amount
in excess of $500,000 for each shareholder) of compensation or similar
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amounts paid to (or accrued as a liability to) certain direct or indirect shareholders, as defined in Section 40-14A-23, Code of Alabama 1975. This amount will
be added to lines 1, 2, and 3, in arriving at the taxpayer’s net worth. Section 4014A-23(f), Code of Alabama 1975, should be referred to for a more thorough
explanation of this adjustment.

amount entered on line 14 must not be less than zero. Individual shareholders
are not considered related parties. Related party debt and related party receivables are not netted in any circumstances. Exempt payables are defined as
stated in Section 40-14A-23(e)(2)(b), Code of Alabama 1975. They include
trade debt, accounts payable, or deposit liabilities to related parties that are
doing business in Alabama. Non-Exempt payables are all other related party
debts.

Line 6. Total Net Worth – Enter the sum of lines 1 through 5.

II. Limited Liability Entities (LLEs)

Line 15. Enter the excess amount (the amount in excess of $500,000 for
the owner) of compensation, distributions or similar amounts paid to (or
accrued as a liability to) certain direct or indirect owners during the determination period, as defined in Section 40-14A-23, Code of Alabama 1975. This
amount will be added to the amounts entered on lines 13 and 14, in arriving at
the taxpayer’s net worth. Section 40-14A-23(f), Code of Alabama 1975, should
be referred to for a more thorough explanation of this adjustment.

Line 7. Enter the total amount of the partner/member capital accounts, but
not less than zero.
Line 8. Enter the excess amount (the amount in excess of $500,000 for
each partner/member) of compensation, distributions or similar amounts paid to
(or accrued as a liability to) certain direct or indirect partners/members during
the determination period, as defined in Section 40-14A-23, Code of Alabama
1975. This amount will be added to the amounts entered on lines 7 and 9, in
arriving at the taxpayer’s net worth. Section 40-14A-23(f), Code of Alabama
1975, should be referred to for a more thorough explanation of this adjustment.

Line 16. Total Disregarded Entity Net Worth – Enter the sum of lines 13
through 15 and go to Part B, line 1.

Part B – Privilege Tax Exclusions
and Deductions:

Line 9. Enter the gross amount of related party debt exceeding line 7, as
required by Section 40-14A-23, Code of Alabama 1975. This amount will be
added to the amount on line 7 in arriving at the taxpayer’s net worth. Related
parties are defined in Section 40-14A-1, Code of Alabama 1975, as any member of a controlled group of corporations as defined by Internal Revenue Code
Section 1563. The definition of related parties also includes any limited liability
entity that would be a member of a controlled group if rules similar to Section
1563 were applied to limited liability entities. Note: The amount entered on line
9 must not be less than zero. Individual shareholders are not considered related
parties. Related party debt and related party receivables are not netted in any
circumstances. Exempt payables are defined as stated in Section 40-14A23(e)(2)(b). They include trade debt, accounts payable, or deposit liabilities to
related parties that are doing business in Alabama. Non-Exempt payables are
all other related party debts.

Exclusions are allowed by Section 40-14A-23 (g), Code of Alabama 1975.
Attach documentation supporting any exclusion claimed on the return.
Line 1. Enter the Total Net Worth from line 6, 10, or 16, Part A.
Line 2. Enter the total book value amount for the investment the taxpayer
has in the equity of other taxpayers. Attach a listing providing for each separate
investment, the name of the taxpayer, the taxpayer’s FEIN, the taxpayer’s
address and the book value of the investment. This exclusion is not available for
the book value of securities (as defined in Internal Revenue Code Section 1236)
primarily for sale to customers in the ordinary course of its trade or business.
Line 3. This Exclusion is Only Available to Financial Institutions –
Financial Institutions should enter the total book value amount for the investment the Financial Institution taxpayer has in the equity of other entities not
doing business in Alabama. The Financial Institution taxpayer must have an
ownership percentage in the other entity of more than 50%. Section 40-14A23(g), Code of Alabama 1975, provides additional information concerning the
exclusion. Attach a listing providing for each separate investment, the name of
the entity, the entity’s FEIN, the entity’s address, and the book value of the
investment. The return will not be considered complete without the listing.

Line 10. Total LLE Net Worth – Enter the sum of lines 7 through 9.

III. Disregarded Entities & Business Trusts
Line 11. Enter the name and Federal Employer Identification Number
(FEIN) or Social Security Number (SSN) of the single member of the disregarded entity.
Line 12. If the taxpayer is a disregarded entity that has as its single member
a taxpayer that IS subject to the Alabama Business Privilege Tax, then the taxpayer is exempt from the privilege tax and the associated filing requirements.

Line 4. Enter the amount reported on the taxpayer’s balance sheet for the
unamortized portion of goodwill and core deposit intangibles that resulted from
a direct purchase of another corporation or limited liability entity. For goodwill,
attach a listing showing for each direct purchase the goodwill originally
acquired, the date the direct purchase occurred, accumulated amortization, the
name and location of the business acquired, and the name and FEIN of the
entity that acquired the business and goodwill.

Line 13. Disregarded Entity Net Worth Computation – If the taxpayer is
a disregarded entity that has as its single member a taxpayer that IS NOT subject to the Alabama Business Privilege Tax, then the disregarded entity must
compute its own net worth, and pay the Alabama Business Privilege Tax
accordingly. Enter the amount the taxpayer’s assets exceed its liabilities, but
not less than zero. The name and FEIN/SSN of the single member must be provided on line 11, or the form will be considered incomplete. A statement must
be attached to the business privilege tax return explaining why the owner is not
subject to the Alabama business privilege tax.

Line 5. Enter the amount reported on the taxpayer’s balance sheet for the
unamortized portion of post-retirement benefits, which the taxpayer elected to
amortize under Financial Accounting Standards Board (FASB) Statement
Number 106, Employers’ Accounting for Postretirement Benefits Other Than
Pensions. The statement was issued in December 1990, and focuses principally on postretirement health care benefits. The supporting documentation should
include a description of benefits, amortization schedule, and the line detail of
the post-retirement benefits on the balance sheet.

Disregarded entity owners that are not subject to the Alabama business
privilege tax include, but are not limited to: resident individual taxpayers; nonresident individual taxpayers; general partnerships; and, foreign business entities not doing business in the State of Alabama and not registered with the
Alabama Secretary of State’s Office to do business in the State of Alabama.

Line 6. This exclusion is only available to Financial Institutions. Financial
Institutions should enter the total amount that the net worth (computed in accordance with lines 1 through 5, above) exceeds 6% of the total assets of the
Financial Institution taxpayer. Attach a computation of the amount claimed as
this exclusion.

Line 14. Enter the gross amount of related party debt exceeding the amount
entered on line 13, as required by Section 40-14A-23, Code of Alabama 1975.
This amount will be added to the amount on line 13 in arriving at the taxpayer’s
net worth. Related parties are defined in Section 40-14A-1, Code of Alabama
1975, as any member of a controlled group of corporations as defined by
Internal Revenue Code Section 1563. The definition of related parties also
includes any limited liability entity that would be a member of a controlled group
if rules similar to Section 1563 were applied to limited liability entities. Note: The

Line 7. Total Exclusions – Enter the total of lines 2 through 6.

Net Worth Apportionment
Line 8. Net Worth Subject to Apportionment – Enter the difference
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between line 1 (Total Net Worth) and line 7 (Total Exclusions).

low-income housing project, the attached documentation must identify the
name of the project, the FEIN of the project, the site of the project, and the net
amount invested in the project. The documentation must also identify how the
investments are reported on the taxpayer’s balance sheet. If this deduction is
taken, the return will not be considered complete without the listing.

Line 9. Alabama Apportionment Factor as of the Date of Organization,
Incorporation, or Qualification – Initial Alabama Business Privilege Tax
Returns require an apportionment factor. The computation of the apportionment
factor for an initial return is to be performed as of the opening of business or the
first day the taxpayer is incorporated, formed, organized (if a domestic entity)
or registered with the Alabama Secretary of State to do business in Alabama (if
a foreign entity). For Financial Institution Group Members only, the ratio of
Alabama property to total property should be used as the apportionment factor
for initial returns. For all other taxpayer types, the ratio of Alabama sales to total
sales should be used as the apportionment factor for initial returns. Section 4014A-24(a), Code of Alabama 1975, establishes the net worth apportionment
requirements for the Alabama business privilege tax.

Line 15. Total Deductions – Enter the total of lines 11 through 14.
Line 16. Taxable Alabama Net Worth – Enter the difference between line
10 (Total Alabama Net Worth) and Line 15 (Total Deductions).
Line 17. Tax Rate – The number on line 17 should be .00025.
Line 18. Gross Privilege Tax Calculated – Multiply line 16 (Taxable
Alabama Net Worth) by line 17 (Tax Rate).
Example:
Line 16. – Taxable Alabama Net Worth . . . . . . . . . . . . . . . . . . . . . . $1,000,000
Line 17. – Tax Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.00025
Line 18. – Gross Privilege Tax Calculated . . . . . . . . . . . . . . . . . . . $
250

Line 10. Total Alabama Net Worth – Multiply line 8 (Net Worth Subject to
Apportionment) by line 9 (Apportionment Factor).

Deductions

Line 19. Ratio of Days Remaining in the Tax Year Divided by 365 –
Enter the ratio of the number of days remaining in the calendar year or, if different, the number of days remaining in the taxpayer’s taxable year, divided by
365. This ratio will allow the business privilege tax to be prorated to the short
taxable year.

Deductions are allowed by Section 40-14A-24(b), Code of Alabama 1975.
Attach documentation supporting any deduction claimed on the return.
Line 11. Enter the net amount invested in bonds and securities issued by
the State of Alabama, or its political subdivisions, prior to January 1, 2000. “Net
amount invested” means the cash, including any premium and net of any discount, paid as the purchase price for the bond or other security, less the
amount of any premium amortized and plus the amount of any discount accreted, reduced by the proportionate amount of principal on the bond or other security that is amortized or otherwise paid or retired. The taxpayer must attach a
schedule listing the details of the deduction. For each bond or security, the listing should provide the net amount invested, the issuing agency, issuance date,
and how the investment is reported on the taxpayer’s balance sheet. This
deduction is not available to dealers in securities (those subject to the requirements of Internal Revenue Code Section 1236) for the book value of bonds and
securities held by the dealer primarily for sale to customers in the ordinary
course of its trade or business.

Line 20. Privilege Tax Due. Multiply line 18 (Gross Tax Due) by line 19
(Ratio of Days Remaining in Taxable Year). If $100 or less, STOP. You do not
have a filing requirement. Do not submit return.
This amount is also entered on page 1 of Form BPT-IN on line 14 (Privilege
Tax Due).
See the following concerning the minimum and maximum amounts for the
tax.

Maximum Privilege Tax:
Financial Institution Groups have a $3,000,000 maximum levy for the
Alabama Business Privilege Tax. See Section 40-14A-22, Code of Alabama
1975.

Line 12. Enter the net amount invested in, or book value from the taxpayer’s balance sheet, for all devices, facilities, or structures, and all identifiable
components or materials for use therein, that are located in Alabama and are
acquired or constructed primarily for the control, reduction, or elimination of air,
ground, or water pollution or radiological hazards where such pollution or radiological hazards result from or would be caused by the taxpayer’s activities in
Alabama.

Insurance companies subject to the insurance premium taxes levied by
Chapter 4A Title 27, Code of Alabama 1975, have a $3,000,000 maximum
levy for the Alabama Business Privilege Tax. See Section 40-14A-22, Code of
Alabama 1975.
C-corporations and LLEs taxed as corporations have a $15,000 maximum
levy for the Alabama Business Privilege Tax. See Section 40-14A-22, Code of
Alabama 1975.

Line 13. Enter the amount reported on the taxpayer’s balance sheet for the
balance of any reserve, account, or trust reasonably determined to satisfy any
liability that is imposed by federal, state, or local government laws or regulations for reclamation, storage, disposal, decontamination, retirement, or other
related costs associated with a plant, facility, mine, or site in Alabama. Attach
documentation identifying the applicable law or regulation that establishes taxpayer’s liability, as well as a computation of the liability. The documentation
must also identify the location of the plant, facility, mine or site in Alabama.

S-corporations, LLEs, and Disregarded Entities have a $15,000 maximum
levy for the Alabama Business Privilege Tax. See Section 40-14A-22(d), Code
of Alabama 1975.
LLEs meeting the definition of “electing family limited liability entity” as stated in Section 40-14A-1, Code of Alabama 1975, have a maximum levy for the
Alabama Business Privilege Tax of $500.

Line 14. Enter the total gross amount reported on the taxpayer’s balance
sheet as the book value of the taxpayer’s investment in low-income, residential
real estate projects that qualify for federal or state income tax credits, loans or
grants. See Section 40-14A-24(b)(7) Code of Alabama 1975. The taxpayer
must attach a listing showing the details of the deduction. For each separate

Minimum Privilege Tax:
Alabama ACT 2022-252 amends Section 40-14(A)-22. For taxable year
2024, taxpayers who would be subject to the minimum tax of one hundred dollars ($100), do not have a filing requirement.

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