Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-18-323

Expenses Associated with a Start-Up Business

Official textalison.legislature.state.al.us11 subsections

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE.

# (a)

In addition to the definition in Section 40-18-321, EXPENSE ASSOCIATED WITH A START-UP BUSINESS is defined as any of the following:

# (1)

Expenses associated with the development of a business plan.

# (2)

Professional services associated with the formation of the business (e.g., attorney and accounting services).

# (3)

An analysis or survey of potential markets, products, labor supply, or transportation facilities.

# (4)

Advertisements for the opening of the business.

# (5)

Salaries and wages for employees who are being trained and their instructors.

# (6)

Travel and other necessary costs for securing prospective distributors, suppliers, or customers.

# (7)

Salaries and fees for executives and consultants, or for similar professional services.

# (b)

For all tax years beginning on or after January 1, 2012, a recently deployed unemployed veteran shall be eligible for a nonrefundable credit against the income tax liability imposed in an amount up to a total of $2,000 for expenses associated with one start-up business in which the recently deployed unemployed veteran holds at least 50-percent ownership interest. A credit under this subsection may only be taken for a business started after April 2, 2012, that is located within Alabama and that shows a net profit of at least $3,000 for the year in which the credit is taken.

# (c)

An employer shall not claim the credit in Section 40-18-322 for an employee who has claimed the credit under Section 40-18-323, and a recently deployed unemployed veteran shall not claim the credit in Section 40-18-323 if an employer has claimed his or her hire for the credit in Section 40-18-322.

Last amended: Act 2012-168, p. 254, §4.

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