Form 40 Or 40nr Draft - Schedule Oc - Other Available Credits

Instructions for Schedule OC

Use this schedule to compute credits available to you.

Part A –

duced after January 1, 1995, provided the coal was mined

in Alabama as certified by the producer of the coal. The

Credit For Taxes Paid To Other States

amount of the total of credit in any one year shall be based

You must complete Schedule CR to calculate the

on the number of tons of Alabama coal produced by the cor-

available credit for taxes paid to other states. NOTE: If you

poration in the year which exceeds the number of tons of

are ONLY claiming a credit for taxes paid to other states,

Alabama coal produced by the corporation in calendar year

do not complete Schedule OC.

1994. In the event a corporation did not produce Alabama

coal during calendar year 1994, such corporation must es-

Part B –

tablish a base year by producing Alabama coal for 12 con-

Basic Skills Education Credit

secutive months. Thereafter, such corporation shall be

eligible for the tax credit as specified herein above over the

This credit is available to resident and nonresident

base year production.

employers who provide basic skills education programs ap-

(Acts 1995, No. 95-239, p. 403, §1.)

proved by the Alabama Department of Education to em-

ployees. Expenses incurred for or relating to instructors,

Part E –

materials, or equipment used in the qualifying program, or

Alabama Enterprise Zone Act Credit

for supplies, textbooks, or salaries, including compensation

paid to employees while participating in the basic skills pro-

This credit is available to corporations, partnerships,

gram may be used in calculating the credit. The credit will

and proprietorships that locate or expand within a desig-

equal 20 percent of the actual costs of education limited to

nated enterprise zone as approved by the Alabama De-

the amount of the employer’s income tax liability. A credit

partment of Economic and Community Affairs. It was

will not be allowed for employers receiving reimbursement

designed to stimulate business and industrial growth in de-

for any cost of the education.

pressed areas of the state. These tax incentives were en-

acted by Act No. 87573 of the Alabama Legislature and

Part C –

were signed into law on July 22, 1987 as the “Alabama En-

Rural Physician Credit

terprise Zone Act.”

This credit is available to licensed resident and non-

Part F –

resident physicians who practice and reside in a small or

Capital Credit

rural Alabama community of less than 25,000 residents with

admission privileges to a small or rural hospital having an

The capital credit is available to investing companies

emergency room. Under the terms of this credit a “small or

and their recipients involved in a qualified project under-

rural hospital” is defined as an acute care hospital with less

taken by certain new businesses to be located in the state

than 105 beds, located more than 20 miles from another

and certain expansions of certain existing businesses. To

acute care facility, or which receives Medicare rural reim-

qualify for the capital credit, the project entity must be reg-

bursement from the federal government. The amount of this

istered with and approved by the Commissioner’s Office of

credit is $5,000.00 per year and may be claimed for not

the Alabama Department of Revenue. The capital credit

more than five consecutive tax years. No credit will be al-

claimed for the tax year shall not exceed 5 percent of the ac-

lowed to physicians meeting the requirements on or before

tual capital costs, as defined in the law, of the new business

May 5, 1993 nor to a physician having previously practiced

or expansion of an existing business for each of 20 years.

within a rural community unless he/she returns to such

The capital credit shall be provided to each investing com-

practice after having practiced in a large or urban commu-

pany and its shareholders, partners, members, owners, or

nity for at least three years.

beneficiaries on Form K-RCC provided by the reporting

company. Each recipient in the investing company will be

Part D –

allowed a capital credit according to the distributive share,

Coal Credit

whether or not distributed, of the project’s Alabama taxable

apportionable income.

For the tax years beginning on and after January 1,

This capital credit CANNOT be carried forward or

1995, every corporation, whether a “subchapter S” corpo-

back by any recipient. The capital credit is limited to the in-

ration, as defined by the 1995 Internal Revenue Code, or

dividual’s current tax year liability and is applied after all

not, foreign or domestic, that is doing business in Alabama,

other deductions, losses, or credits permitted under Titles

as a producer of coal mined in Alabama, shall be allowed a

40 and 41, Code of Alabama 1975. The Form K-RCC must

credit against the tax imposed by Section 40-18-2, in the

be attached to the individual return in order to be eligi-

amount of one dollar ($1) per ton of increased production of

ble to receive the capital credit.

coal over the previous year’s production of coal as set out

herein below. Such tax credit shall be based on coal pro-

Form 40 Or 40nr Draft - Schedule Oc - Other Available Credits - 2008 Page 2

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