Income/Franchise:
Alabama DOR Reminds Minimum Business Privilege Tax is Repealed for Tax Years Beginning in 2024
Business Privilege Tax – FAQs: What taxpayers must file an Alabama Business Privilege Tax return?, Ala. Dept. of Rev. (7/24). As part of a series of recently posted answers to some frequently asked questions (FAQs) regarding Alabama’s business privilege tax (BPT), the Alabama Department of Revenue (Department) reminds that pursuant to legislation enacted in 2022 [see H.B. 391 (Act 2022-252), for more details on this legislation], for taxable years beginning on or after January 1, 2024, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama who would otherwise be subject to the minimum tax due under the Alabama BPT shall be exempt from the tax. As explained in the Department’s earlier notice on this law change, for taxable years beginning after December 31, 2023, there is a full exemption from the BPT on tax due of $100 or less, and taxpayers with a BPT liability of $100 or less are not required to file a BPT return. Also, beginning January 1, 2024, the Alabama Secretary of State Corporation Annual Report is no longer filed with the BPT return. Please contact us with any questions.
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