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AL SB368
Bill
Status
2/23/2012
Primary Sponsor
Robert Ward
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AI Summary
SB368 Summary
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Establishes a state research and development tax credit for businesses and financial institutions based on qualified research expenses (QRE) performed within Alabama, mirroring the federal R&D tax credit.
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Provides a 6.5% tax credit against state income or excise taxes for QRE incurred in-state, or 15% if research is conducted through sponsored contracts with Alabama universities, Hudson-Alpha Institute for Biotechnology, or Southern Research Institute.
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Allows pass-through entities (S corporations, partnerships, LLCs, trusts, estates) to allocate the QRE tax credit to their owners, partners, members, or beneficiaries for use against their individual or corporate tax liability.
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Caps the annual tax credit at $100,000 per taxpayer or pass-through entity, with unused credits eligible for carryover into subsequent tax years for up to 10 years.
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Effective for taxable years beginning after December 31, 2012.
Legislative Description
Income tax credit for qualified research and development expenses for financial institutions and businesses, including owners of pass-through businesses, authorized, Secs. 40-18-280, 40-18-281 added; Sec. 40-16-8 am'd.
Taxation
Last Action
Read for the first time and referred to the Senate committee on Finance and Taxation Education
2/23/2012