AL SB48

Amends Section 40-18-194 of the Alabama Code to extend the carryforward period for capital income tax credits from one (1) to four (4) years for qualifying projects with capital costs of at least $100 million that create at least 100 new jobs.

Capital credits may be carried forward for four (4) years if capital costs are at least $400 million, three (3) years if at least $300 million, two (2) years if at least $200 million, and one (1) year if at least $100 million.

Allows entities to delay the initial use of capital credits for up to three years after a qualifying project is placed in service, with the 20-year credit period beginning after that delay.

Permits shareholders, partners, members, owners, and beneficiaries to elect annually to use their allowable portion of the capital credit as a nonrefundable estimated tax payment rather than as a direct credit against income tax liability.

Effective for qualifying projects with project agreements entered into prior to December 31, 2011 but not yet placed in service, and for all projects with agreements on or after December 31, 2011.