Alabama § 40-1-51 - Requirements for Tax Credit Legislation; Taxpayer Reporting Requirements.
Full text of Alabama Code of Alabama § 40-1-51 — Requirements for Tax Credit Legislation; Taxpayer Reporting Requirements., with citation guidance and answers to common questions.
§ 40-1-51. Requirements for Tax Credit Legislation; Taxpayer Reporting Requirements.
(a) Beginning in the 2024 Regular Session of the Legislature, all new tax credit legislation shall include the following:
(1) For every bill enacting a new tax credit, a tax credit performance statement which must state the legislative purpose for the new tax credit. The tax credit performance statement must indicate one or more of the following as the legislative purpose of the new tax credit:
a. Tax credits intended to induce certain designated behavior by taxpayers.
b. Tax credits intended to improve industry competitiveness.
c. Tax credits intended to create or retain jobs.
d. Tax credits intended to reduce structural inefficiencies in the tax structure.
e. Tax credits intended to provide tax relief for certain businesses or individuals.
(2) A statement providing that new tax credits shall expire on the first day of the calendar year following the calendar year that is five years from the effective date of the tax credit. With respect to any new property tax exemption, the exemption does not apply to taxes levied for collection beginning in the calendar year following the calendar year that is five years from the effective date of the tax credit.
(3) A statement establishing the limit on the amount of tax credits that may be provided during any applicable period of the tax credit.
(4) A statement limiting the number of years for carryforward of unused credits to no more than five years.
(5) A statement limiting the transfer or sale of tax credits.
(b) For tax years beginning after December 31, 2024, taxpayers claiming a new tax credit shall report the amount of the tax credit claimed by the taxpayer in accordance with the taxpayer’s regular tax reporting duties to the Department of Revenue. The amount of the tax credit claimed shall be considered as confidential taxpayer information, and the Department of Revenue shall not be required under this section to disclose confidential information.
(c) The term tax credit as used in this section shall mean a credit allowed against the amount of tax imposed by Chapter 16 or Chapter 18.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-1-51
What does Code of Alabama § 40-1-51 cover?
Section 40-1-51 ("Requirements for Tax Credit Legislation; Taxpayer Reporting Requirements.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-1-51?
A common citation format is "Code of Alabama § 40-1-51" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-1-51 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.