Form Int-2 - Report Of Investment In Project For Income Tax Capital Credit Page 3
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4The project must create a minimum of 20 jobs for new employees and the average hourly wage of all new employees at the project must not be less than
the base wage requirement. If the project is located in a Favored Geographic Area, minimum job creation is five (5) and the project is subject to a lower
base wage requirement.
Hydropower Electricity Production Project. A project owned by a utility described in Section 37-4-1(7)a, or owned by an investing company which
is itself owned by a utility, at which the predominant trade or business activity conducted will be the production of electricity from hydropower production
as defined in Section 40-18-1(16), with capital costs not less than $5,000,000. The project must create a minimum of 20 jobs for new employees and
the average hourly wage of all new employees at the project must not be less than the base wage requirement. If the project is located in a Favored Geo-
graphic Area, minimum job creation is five (5) and the project is subject to a lower base wage requirement.
Alabama State Docks Project. A project with capital costs which are not less than $8,000,000, and at which the predominant trade or business activ-
ity conducted will constitute industrial, warehousing, or research activity as defined in Section 40-18-240(4) as North American Industry Classification
System (NAICS) Subsector 493 (Warehousing and Storage), or Industry Number 488320 (Marine Cargo Handling), when the trade or business is con-
ducted on premises in which the Alabama State Port Authority has an ownership, leasehold, or other possessory interest and such premises are used
as part of the operations of the Alabama State Port Authority. The state docks project is provided under Section 40-18-240 et seq., Code of Alabama
1975.
LINE BY LINE INSTRUCTIONS
Project Number – Enter the project number assigned by the Alabama
multiple stages (i.e., phases), identify all phases in the description.
Department of Revenue.
Attach additional sheets if necessary.
Project Entity – Enter the name of the entity that will receive the cap-
Line 4 – Enter the date project was placed in service. The credit
ital credit. The entity qualifying for the capital credit must be the entity
begins on the actual date the project is placed in service. Placed in ser-
meeting the requirements for the capital credit. If the qualifying project is
vice is defined as the earlier of the date on which either a) the period for
a joint venture, a legal project entity must be created in order for the
depreciation with respect to the project begins; or b) the project begins a
investing companies to receive the capital credit.
specifically designed function for the production of revenue. If the project
was completed in multiple stages (i.e., phases), enter the actual date the
Single Member Limited Liability Companies (“SMLLC”) will be classi-
last phase was placed in service. NOTE: If the project is a phased pro-
fied as they are classified for federal income tax purposes under the Inter-
ject, the capital credit will not begin until the last phase is placed in
nal Revenue Service’s (IRS) “check-the-box” regulations. If the investing
service and any tax liability incurred prior to the last phase being
company is a SMLLC that elects to be treated as a corporation for feder-
placed in service will not be subject to the credit.
al tax purposes, enter the SMLLC as the project entity. If the investing
company is a SMLLC that does not “check-the-box” for federal income tax
Line 5 – Enter the actual capital costs of the project. If the project is
purposes, the SMLLC shall be treated as a disregarded entity for Ala-
a phased project, enter the actual costs of all phases. To verify these
bama tax purposes and the parent must be entered as the project entity.
costs, the asset depreciation schedule is required to be attached to the
Form INT-2. The schedule should include the description, in-service date
Qualified Subchapter S Subsidiaries (Q-subs) under 26 U.S.C. Sec-
and cost of each asset. See Section 40-18-190(2), Departmental Rule
tion 1361(b)(3) shall be treated as disregarded entities for Alabama
810-2-7-.01(2)(c), or Section 40-18-240(1) for specific inclusions and
income tax purposes. If the investing company is a Q-sub, the parent
exclusions of capital costs.
must be entered as the project entity.
Line 6a – Add 5a through 5j and enter total here. The qualifying pro-
Project Name – Enter name of project if identified as a division or pro-
ject must meet the minimum capital investment for the type of project indi-
ject name. Enter company Doing Business As (DBA) if project is doing
cated.
business under another name. Enter the name of the SMLLC if the qual-
ifying project is a SMLLC treated as a disregarded entity for tax purpos-
Line 6b – Multiply line 6a by 5%. This is the maximum amount of cap-
es. Enter the name of the Q-sub if the qualifying project is a Q-sub.
ital credit available to be applied against the income tax or financial insti-
tution excise tax liability generated by or arising out of the qualifying pro-
Address – Enter the address to which all correspondence should be
ject each year for 20 years, beginning in the year the project is placed in
directed regarding the project.
service.
Location of Project – Enter the project’s physical address.
Line 7 – Enter the number of new employees hired at this project. The
FEIN – Enter the Federal Employer Identification Number.
qualifying project must meet the minimum job requirement for the type of
project indicated. New employees are those persons who have not pre-
NAICS Code – If the predominant business activity is an industrial,
viously been employed at the site on which the project is or will be placed
warehousing or research activity as defined in Code of Alabama 1975
in service or have not been employed by the investing company or com-
Section 40-18-190(a)(8), a warehousing or storage activity, a headquar-
panies in this state; will be employed full-time as a direct result of the pro-
ters facility , or a state docks project as defined in Section 40-18-240(4),
ject being placed in service; and will be subject to the personal income
enter the 2007 North American Industrial Classification System (NAICS)
tax imposed by Section 40-18-2, Code of Alabama 1975, upon com-
code for the project.
mencement of employment at the project. Jobs must be provided begin-
Project Filing Status – Check the applicable box.
ning with the date which is not later than one (1) year after the project is
placed in service and continuing each year thereafter. For warehousing or
Line 1a – Check the applicable box. See “Statutory Requirements for
storage activity projects, jobs must be provided beginning with the date
Qualifying Projects” for project descriptions.
which is not later than two (2) years after the project is placed in service
Line 1b – Indicate if project is located in a Favored Geographic Area
and continuing each year thereafter.
(FGA). This designation is determined at the time the Form INT is filed for
the project.
A project that qualifies in a FGA will continue to be a qual-
Line 8 – Enter the average hourly wage of the new employees of the
ified FGA project, even if the county later loses its designation as a FGA
project. Section 40-18-193(a) requires the average hourly wages for all
as long as the project otherwise remains in compliance with the law.
new employees at the qualifying project be not less than the base wage
requirement no later than one year after the project is placed in service
Line 2 – Briefly describe the type of trade or business that the project
and during each year the capital credit is available. For projects whose
is engaged in. For projects that do not require a NAICS code, provide a
Form INT was filed after May 22, 2009, the base wage requirement is the
detailed description that will identify the activities as qualifying activities.
lesser of the indexed hourly wage or the average hourly wage of the
Attach additional sheets if necessary.
county where the project is located, excluding benefits. For these pro-
Line 3 – Enter a full description of the activities of the project. Please
jects, the base wage requirement is determined as of the date the Form
be detailed in the activities of the project. If the project was completed in
INT for the project was filed with the Department and will remain constant
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