To stimulate business and industrial growth in depressed areas of the state, Alabama offers certain tax incentives to corporations, partnerships, and proprietorships which locate or expand within a designated enterprise zone. These tax credit incentives were enacted by Act No. 87-573 of the Alabama Legislature and signed into law on July 22, 1987 as the “Alabama Enterprise Zone Act.”
In order to qualify for the tax credits, a business must be located within a designated zone as approved by the Alabama Department of Economic and Community Affairs. If a credit is earned by a partnership or S corporation, the credit will be distributed to each partner or shareholder based on the percentage of ownership. The partnership or S corporation should advise each partner or shareholder of the amount of his/her income subject to this credit.
For further information regarding the “Alabama Enterprise Zone Act” and the necessary forms to claim this credit, you should contact:
Alabama Department of Economic and Community Affairs
Development Division401 Adams Avenue
P. O. Box 5690 Montgomery, AL 36103-5690
Phone (334) 242-8672
Alabama Department of Revenue
P.O. Box 327410
Montgomery, AL 36132-7410
Phone (334) 242-1000
The Alabama Enterprise Zone Act is located within the "Credits" section of the [#AFFILIATE#] Alabama state program. To locate this area, log into your [#AFFILIATE#] account and select "State Section" located on the black navigation bar once you reach the "Welcome/My Account" screen. You will then have the option to "Edit" your Alabama return if it has been previously created. Given these instructions, please click on "Enter Myself">>>"Begin"(Credits)>>>"Begin"(Enterprise Zone Act). Within this entry page, please provide the amount reported to you on Line 13 from Part II of your Schedule EZK1 or Part IV of your Schedule EZ.