AL SB107

Extends the deadline for Alabama electing pass-through entities to make their election to be taxed as an electing pass-through entity for tax years beginning January 1, 2024.

Changes the election deadline from the fifteenth day of the third month following the close of the tax year to the due date of the corresponding Alabama annual return, including extensions.

For tax years beginning January 1, 2025 and later, the election or revocation must be made on the timely filed return, including any extensions granted.

Applies to Alabama S corporations and subchapter K entities that elect to pay Alabama income tax at the highest marginal rate under Section 40-18-5.

Becomes effective immediately upon passage and approval by the Governor.