Form Int - Report Of Intent To Invest In Project For Income Tax Capital Credit - 2009 Page 4
Download a blank fillable Form Int - Report Of Intent To Invest In Project For Income Tax Capital Credit - 2009 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form Int - Report Of Intent To Invest In Project For Income Tax Capital Credit - 2009 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4small business addition projects, not less than 15 jobs for new employees must
from the project’s operations principally to unaffiliated or unrelated persons. The
be created. For projects located in a Favored Geographic Area (except for head-
project entity will apportion the total amount of its Alabama taxable apportion-
quarters facilities and data processing centers), not less than 5 jobs for new
able income, before the related federal income tax deduction, to the project by
employees must be created.
multiplying the income by a fraction, the numerator of which is the project’s prop-
erty factor plus the project’s payroll factor plus the project’s sales factor, and the
New employees are those persons who have not previously been employed at
divisor of which is three (3). If any factor is not used in the production of busi-
the site on which the project is or will be placed in service or have not been
ness income, it shall be eliminated and the divisor reduced accordingly.
Separate Accounting Method – This method is to be used when the prior two
employed by the investing company or companies in this state; will be employed
full-time as a direct result of the project being placed in service; and will be sub-
ject to the personal income tax imposed by Section 40-18-2, Code of Alabama
methods do not effectuate an equitable determination of income generated by
1975, upon commencement of employment at the project. Jobs must be provid-
or arising out of the qualifying project, in a fair and equitable manner. The proj-
ed beginning with the date which is not later than one (1) year after the project
ect entity may request, or the Department may require, such income to be cal-
is placed in service and continuing each year thereafter.
culated using a separate accounting method. The project entity will determine
Line 8 – For all projects except state docks projects, enter the projected aver-
the total amount of the qualifying project’s income, including the related federal
income tax deduction, allocable to the project by using a separate accounting
age hourly wage of the new employees of the project. Section 40-18-193(a)
method, agreed upon by the Department. Such separate accounting method
requires the average wages for all new employees at the qualifying project be
will require the accounting and related records to be maintained in a manner
not less than the base wage requirement by the date which is not later than one
showing the project’s separate income and operations in Alabama and utilize
year after the project is placed in service and during each year throughout the
“arm’s length” pricing to the sales of goods or services between the Project and
life of the credit. Section 40-18-190(1) establishes the base wage requirement
either affiliated legal entities or other accounting units in the Corporation.
for new employees at the project.
Please note the project entity must be prepared to substantiate reason for sep-
arate accounting and provide a detailed working example of method to be used.
Line 12a – Check the applicable box. If an investing company reduces its level
For projects located in favored geographic areas, the average hourly wage of all
new employees at the project must be the lesser of $12 per hour, indexed annu-
ally as provided in Section 25-5-68, Code of Alabama 1975, or the average
of employment at an existing facility in this state and within two years following
hourly wage of the county where the qualifying project is located.
the reduction in its level of employment places a qualifying project in service,
only the number of employees in excess of the number of employees who
For all other projects, the average hourly wage of all new employees at the proj-
worked at the existing facility prior to the reduction in employment shall be
ect must be the lesser of $15 per hour, indexed annually as provided in Section
deemed to be new employees for purposes of meeting the employee require-
25-5-68, or the average hourly wage of the county where the qualifying project
ments as described in Section 40-18-190 et seq.
Line 12b – If an investing company has closed a facility in Alabama in the last
is located.
A current County Wage listing is available on the Department of Revenue’s web-
two years, list the date of the closure for the facility, the number of employees at
site at under Tax Incentives.
the facility on the date of closure, and the location of the facility. If an investing
company closes an existing facility in this state and within two (2) years follow-
There is an exception for direct processors of agriculture food products. These
ing the closing places a qualifying project in service, only the number of employ-
wages shall be determined by the local labor market rate. Contact the ADOR
ees who worked at the existing facility at the time of the closure shall be treated
Office of Economic Development (334-242-1175) for more information.
as new employees for the purposes of meeting the employee requirements as
Line 9 – Enter the county where the project is located.
described in Section 40-18-190 et seq.
Line 13 – Enter the current number of employees of the project entity. This num-
Line 10 – Enter the name of the person to be contacted if additional information
ber shall be used in assisting in the determination of whether a project meets
is needed regarding the capital credit and to whom all correspondence for the
the new employee qualification requirements of the capital credit. For an invest-
capital credit will be sent. Include a telephone number if different from the num-
ing company to qualify for a small business addition, an entity must have 100 or
ber indicated on the top of the application.
fewer employees. Additionally, projects may not include employees previously or
Line 11 – Check the box to designate which accounting method to be used to
currently employed at the site or employed elsewhere in the state by the invest-
ing company as new employees for purposes of the capital credit.
Allocations of Capital Credit – List all participants of the project entity entitled
determine how the project income will be determined. After the Form INT has
been filed indicating which method is to be used, the Alabama Department of
Revenue will initiate an agreement outlining the method of accounting designat-
to receive the capital credit. For example, if the project entity is a C corporation,
ed to be used at the project. This agreement shall serve as the written agree-
enter the name of the C corporation; if the project entity is an LLC, enter the
ment required by Section 40-18-192 and Section 40-18-242. Please Note: An
name of all its members; if the project entity is a partnership, enter the name of
executed accounting practices agreement must be in place prior to taking the
all its partners. Additionally, include the entities’ addresses, social security num-
capital credit.
bers or federal identification numbers, and percentages of credit allocated to
Two Factor Method – This method to be used only where the project has sales
each entity.
This list will serve as the agreement between the Alabama
Department of Revenue and the investing company or companies specifying the
from the project’s operation principally to affiliated or related persons or has no
allocation and treatment of the capital credit provided by Section 40-18-190 et
sales of its own (or cannot be identified/tracked with the project), or if the proj-
seq. and Section 40-18-240 et seq. The capital credit shall be allocated among
ect is a headquarters facility. The project entity will apportion the total amount of
shareholders, partners, members, owners, or beneficiaries of the investing com-
its Alabama taxable apportionable income, before the related federal income tax
pany or companies entitled to the capital credit based on their distributive share,
deduction, to the project by multiplying the income by a fraction, the numerator
whether or not distributed, of the project’s Alabama taxable apportionable
of which is the project’s property factor plus the project’s payroll factor, and the
income.
divisor of which is two (2). If any factor is not used in the production of business
income, it shall be eliminated and the divisor reduced accordingly.
Attach additional sheets if necessary. Additional forms, including an Allocations
Three Factor Method – This method is to be used where the project has sales
of Capital Credit Schedule, can be downloaded off of the Alabama Department
of Revenue’s website at under Tax Incentives.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Wv/mun-1 - Application To Participate In Municipal Court Income Tax Refund Offset Program - 2015
Financial
Form Int-4 - Notice Of Change Of Ownership, Interest, Or Participation Of Interest In Income Tax Capital Credit Project
Financial
Form F-1193t - Instructions For The Notice Of Intent To Transfer Florida Renewable Energy Production Tax Credit
Financial
Form Ri-4868 - Application For Automatic Extension Of Time To File Rhode Island Individual Income Tax Return - 2009
Financial
Related Categories
Parent category: Financial