Form INT-2 "Report of Investment in Project for Income Tax Capital Credit" - Alabama

What Is Form INT-2?

This is a legal form that was released by the Alabama Department of Revenue - a government authority operating within Alabama. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on March 1, 2014;
  • The latest edition provided by the Alabama Department of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form INT-2 by clicking the link below or browse more documents and templates provided by the Alabama Department of Revenue.

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Download Form INT-2 "Report of Investment in Project for Income Tax Capital Credit" - Alabama

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FORM
A
D
R
LABAMA
EPARTMENT OF
EVENUE
INT-2
Report of Investment in Project
DEPARTMENT USE ONLY
CONTROL NUMBER
for Income Tax Capital Credit
___________________
03/14
This form is used to report the actual costs of a capital project and date the project was placed in service.
The project number originally assigned by the Alabama Department of Revenue must be indicated.
Project Number:
Project Name:
Project Entity:
FEIN:
Address:
Telephone No.: (
)
City:
State:
ZIP:
NAICS:
Project Location (if different from above):
Project filing status: (
only one)
S Corporation
Partnership
LLC
C Corporation
Estate/Trust
Sole Proprietorship
1a. Type of project:
Industrial, Warehousing, or Research Activity
Small Business Addition
Headquarters Facility
Data Processing Center
Research and Development Facility
Renewable Energy Facility
State Docks
Tourism Destination Attraction
Hydropower Electricity Production
Warehousing or Storage
Alternative Energy Resources Electricity Production
1b. Is project located in a Favored Geographic Area?
Yes
No
2.
Type of trade or business conducted at the project:
3.
Description of project (Attach additional sheets if necessary. If project was phased, describe each phase.):
4.
Date project was placed in service (If project was phased, enter actual date last phase placed in service.):
7.
Number of new employees employed by
5.
Actual Project Costs:
this project: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a. Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
Average hourly wage for new employees
b. Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
employed by this project:. . . . . . . . . . . . . . . . . . . . . .
c. Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d. Architectural and Engineering . . . . . . . . . . . . . . . . . . .
e. Landscaping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 0
6a. Total Actual Project Costs . . . . . . . . . . . . . . . . . . . . . . . . .
$ 0
6b. Annual Credit Available (multiply line 6a by 5%) . . . . . . .
9.
Has investing company reduced its workforce in Alabama within two years of project being placed in service?
Yes
No
10. Has an investing company in the project closed a facility in Alabama within two years of project being placed in service?
Yes
No
If yes, complete the following:
Date of closure:
Number of employees at the date of closure:
Location of facility:
11.
Has any of the property identified in line 5 been previously placed in service in Alabama by an investing company or a related party?
Yes
No
12.
Contact person for capital credit and to whom all correspondence will be sent:
Allocations of Capital Credit
A complete list of all participants in the project entity entitled to receive the Capital Credit must be provided. (Attach additional sheets if necessary.)
1.
Name:
2.
Name:
Address:
Address:
City:
State:
Zip:
City:
State:
Zip:
Social Security No. or FEIN:
Social Security No. or FEIN:
Percentage Allocation of Credit:
%
Percentage Allocation of Credit:
%
Under penalties of perjury, I declare that I am duly authorized to complete this form and that I have listed all the participants of the project entity. I have examined
the above statements and to the best of my knowledge and belief they are true, correct, and complete.
Your Signature:
Title:
Date:
Reset
FORM
A
D
R
LABAMA
EPARTMENT OF
EVENUE
INT-2
Report of Investment in Project
DEPARTMENT USE ONLY
CONTROL NUMBER
for Income Tax Capital Credit
___________________
03/14
This form is used to report the actual costs of a capital project and date the project was placed in service.
The project number originally assigned by the Alabama Department of Revenue must be indicated.
Project Number:
Project Name:
Project Entity:
FEIN:
Address:
Telephone No.: (
)
City:
State:
ZIP:
NAICS:
Project Location (if different from above):
Project filing status: (
only one)
S Corporation
Partnership
LLC
C Corporation
Estate/Trust
Sole Proprietorship
1a. Type of project:
Industrial, Warehousing, or Research Activity
Small Business Addition
Headquarters Facility
Data Processing Center
Research and Development Facility
Renewable Energy Facility
State Docks
Tourism Destination Attraction
Hydropower Electricity Production
Warehousing or Storage
Alternative Energy Resources Electricity Production
1b. Is project located in a Favored Geographic Area?
Yes
No
2.
Type of trade or business conducted at the project:
3.
Description of project (Attach additional sheets if necessary. If project was phased, describe each phase.):
4.
Date project was placed in service (If project was phased, enter actual date last phase placed in service.):
7.
Number of new employees employed by
5.
Actual Project Costs:
this project: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a. Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
Average hourly wage for new employees
b. Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
employed by this project:. . . . . . . . . . . . . . . . . . . . . .
c. Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d. Architectural and Engineering . . . . . . . . . . . . . . . . . . .
e. Landscaping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 0
6a. Total Actual Project Costs . . . . . . . . . . . . . . . . . . . . . . . . .
$ 0
6b. Annual Credit Available (multiply line 6a by 5%) . . . . . . .
9.
Has investing company reduced its workforce in Alabama within two years of project being placed in service?
Yes
No
10. Has an investing company in the project closed a facility in Alabama within two years of project being placed in service?
Yes
No
If yes, complete the following:
Date of closure:
Number of employees at the date of closure:
Location of facility:
11.
Has any of the property identified in line 5 been previously placed in service in Alabama by an investing company or a related party?
Yes
No
12.
Contact person for capital credit and to whom all correspondence will be sent:
Allocations of Capital Credit
A complete list of all participants in the project entity entitled to receive the Capital Credit must be provided. (Attach additional sheets if necessary.)
1.
Name:
2.
Name:
Address:
Address:
City:
State:
Zip:
City:
State:
Zip:
Social Security No. or FEIN:
Social Security No. or FEIN:
Percentage Allocation of Credit:
%
Percentage Allocation of Credit:
%
Under penalties of perjury, I declare that I am duly authorized to complete this form and that I have listed all the participants of the project entity. I have examined
the above statements and to the best of my knowledge and belief they are true, correct, and complete.
Your Signature:
Title:
Date:
Instructions for Preparing
Report of Investment in Project for Income Tax Capital Credit
(Form INT-2)
GENERAL INSTRUCTIONS
Title 40, Chapter 18, Articles 7 and 9, Code of Alabama 1975 provide for an annual capital cost credit against Alabama income tax liability generat-
ed by or arising out of a qualifying project in the amount of five percent of capital costs for 20 years, beginning in the year the qualifying project is placed
in service. For certain qualifying projects, the credit can be applied against the financial institution excise tax generated by or arising out of a qualifying
project.
This form is to serve as the written statement of the actual investment (capital costs) in a project in accordance with the provisions of Section 40-18-
190 et seq. and Section 40-18-240 et seq., and should be filed when these costs are known and after the project is placed in service. The forms sub-
mitted by the project entity will constitute a filing on behalf of all shareholders, partners, members, owners, or beneficiaries of the investing company(ies)
entitled to the capital credit.
If you have any questions pertaining to the administration of this form or related to the capital credit in general, please contact the Alabama
Department of Revenue at (334) 242-1175. Mail this completed form to: Alabama Department of Revenue, ATTN: Capital Credit Program Admin-
istrator, P.O. Box 327001, Montgomery, AL 36132-7001.
STATUTORY REQUIREMENTS FOR QUALIFYING PROJECTS
Industrial, Warehousing or Research Activity Project. A project at which the predominant trade or business activity conducted will constitute indus-
trial, warehousing, or research activity, with capital costs not less than $2,000,000. The project must create a minimum of 20 jobs for new employees and
the average hourly wage of all new employees at the project must not be less than the base wage requirement. If the project is located in a Favored Geo-
graphic Area, capital costs are not less than $500,000, minimum job creation is five (5) and the project is subject to a lower base wage requirement.
Industrial, warehousing, or research activity is defined in Section 40-18-190(a)(8) as any trade or business in the 2007 North American Industrial Clas-
sification System (NAICS), promulgated by the Executive Office of the President of the United States, Office of Management and Budget as: Sectors 31
(except National Industry 311811), 32, and 33, Subsectors 423, 424, 511 and 927, Industry Groups 2121, 5417, 5415, and 5182, Industries 11331 and
48691, National Industries 115111, 517110, 541380, and 561422 (in bound call centers only). Also included is any process or treatment facility which
recycles, reclaims, or converts materials, which include solids, liquids, or gases, to a reusable product.
Small Business Addition Project. A project at which the predominant trade or business activity conducted will constitute industrial, warehousing,
or research activity as defined in Section 40-18-190(a)(8), with capital costs not less than $1,000,000. The project must create a minimum of 15 jobs for
new employees and the average hourly wage of all new employees at the project must not be less than the base wage requirement. A small business
addition is an addition to an existing facility, to be used as a part of any existing facility of a business located in the state that, prior to the date on which
the addition is placed in service, had 100 or fewer full-time employees.
Headquarters Facility Project. A project described in the 2007 North American Industrial Classification System (NAICS) National Industry 551114,
with capital costs not less than $2,000,000. The project must create a minimum of 50 jobs for new employees and the average hourly wage of all new
employees at the project must not be less than the base wage requirement. Headquarters facility projects do not have Favored Geographic Area status.
Data Processing Center Project. An establishment engaged in the provision of complete processing and specialized reports from data, the provi-
sion of automated data processing and data entry services, the provision of an infrastructure for hosting or data processing services, the provision of spe-
cialized hosting activities, the provision of application service provisioning, the provision of general time-share mainframe facilities, or some combination
of the foregoing, without regard to whether any other activities are conducted at the establishment, with capital costs not less than $2,000,000. The pro-
ject must create a minimum of 20 jobs for new employees and the average hourly wage of all new employees at the project must not be less than the
base wage requirement. If the project is located in a Favored Geographic Area, capital costs are not less than $500,000, minimum job creation is five (5)
and the project is subject to a lower base wage requirement.
Research & Development Facility Project. An establishment engaged in conducting original investigations undertaken on a systematic basis to
gain new knowledge and/or applying research findings or other scientific knowledge to create new or significantly improved products or processes, with
capital costs not less than $2,000,000. The project must create a minimum of 20 jobs for new employees and the average hourly wage of all new employ-
ees at the project must not be less than the base wage requirement. If the project is located in a Favored Geographic Area, capital costs are not less than
$500,000, minimum job creation is five (5) and the project is subject to a lower base wage requirement.
Renewable Energy Facility Project. Any plant, property, or facility that either 1) produces electricity or natural gas, in whole or in part, from biofu-
els as such term is defined in Section 2-2-90(c)(2) or from renewable energy resources as such term is defined in Section 40-18-1(30) with the excep-
tion that hydropower production shall be excluded from such definition; or 2) produces biofuel as such term is defined in Section 2-2-90(c)(2), with capi-
tal costs not less than $2,000,000. The project must create a minimum of 20 jobs for new employees and the average hourly wage of all new employees
at the project must not be less than the base wage requirement. If the project is located in a Favored Geographic Area, capital costs are not less than
$500,000, minimum job creation is five (5) and the project is subject to a lower base wage requirement.
Warehousing or Storage Activity Project. A project falling within Subsector 493 of the 2007 North American Industry Classification System, where
the project will provide logistics services related to the distribution of goods, with capital costs not less than $5,000,000. The project must create a min-
imum of 50 jobs for new employees and the average hourly wage of all new employees at the project must not be less than the base wage requirement.
If the project is located in a Favored Geographic Area, capital costs are not less than $1,000,000 and the project is subject to a lower base wage require-
ment.
Tourism Destination Attraction Project. A project as defined in Section 40-18-190(a)(19), with capital costs not less than $20,000,000. The pro-
ject must create a minimum of 50 jobs for new employees and the average hourly wage of all new employees at the project must not be less than the
base wage requirement. If the project is located in a Favored Geographic Area, capital costs are not less than $5,000,000, minimum job creation is 20
and the project is subject to a lower base wage requirement.
Alternative Energy Resources Electricity Production Project. A project owned by a utility described in Section 37-4-1(7)a, Code of Alabama 1975,
or owned by an investing company which is itself owned by a utility, at which the predominant trade or business activity conducted will be the production
of electricity from alternative energy resources as defined in Section 40-18-1(2) Code of Alabama 1975, with capital costs not less than $100,000,000.
The project must create a minimum of 20 jobs for new employees and the average hourly wage of all new employees at the project must not be less than
the base wage requirement. If the project is located in a Favored Geographic Area, minimum job creation is five (5) and the project is subject to a lower
base wage requirement.
Hydropower Electricity Production Project. A project owned by a utility described in Section 37-4-1(7)a, or owned by an investing company which
is itself owned by a utility, at which the predominant trade or business activity conducted will be the production of electricity from hydropower production
as defined in Section 40-18-1(16), with capital costs not less than $5,000,000. The project must create a minimum of 20 jobs for new employees and
the average hourly wage of all new employees at the project must not be less than the base wage requirement. If the project is located in a Favored Geo-
graphic Area, minimum job creation is five (5) and the project is subject to a lower base wage requirement.
Alabama State Docks Project. A project with capital costs which are not less than $8,000,000, and at which the predominant trade or business activ-
ity conducted will constitute industrial, warehousing, or research activity as defined in Section 40-18-240(4) as North American Industry Classification
System (NAICS) Subsector 493 (Warehousing and Storage), or Industry Number 488320 (Marine Cargo Handling), when the trade or business is con-
ducted on premises in which the Alabama State Port Authority has an ownership, leasehold, or other possessory interest and such premises are used
as part of the operations of the Alabama State Port Authority. The state docks project is provided under Section 40-18-240 et seq., Code of Alabama
1975.
LINE BY LINE INSTRUCTIONS
Project Number – Enter the project number assigned by the Alabama
multiple stages (i.e., phases), identify all phases in the description.
Department of Revenue.
Attach additional sheets if necessary.
Project Entity – Enter the name of the entity that will receive the cap-
Line 4 – Enter the date project was placed in service. The credit
ital credit. The entity qualifying for the capital credit must be the entity
begins on the actual date the project is placed in service. Placed in ser-
meeting the requirements for the capital credit. If the qualifying project is
vice is defined as the earlier of the date on which either a) the period for
a joint venture, a legal project entity must be created in order for the
depreciation with respect to the project begins; or b) the project begins a
investing companies to receive the capital credit.
specifically designed function for the production of revenue. If the project
was completed in multiple stages (i.e., phases), enter the actual date the
Single Member Limited Liability Companies (“SMLLC”) will be classi-
last phase was placed in service. NOTE: If the project is a phased pro-
fied as they are classified for federal income tax purposes under the Inter-
ject, the capital credit will not begin until the last phase is placed in
nal Revenue Service’s (IRS) “check-the-box” regulations. If the investing
service and any tax liability incurred prior to the last phase being
company is a SMLLC that elects to be treated as a corporation for feder-
placed in service will not be subject to the credit.
al tax purposes, enter the SMLLC as the project entity. If the investing
company is a SMLLC that does not “check-the-box” for federal income tax
Line 5 – Enter the actual capital costs of the project. If the project is
purposes, the SMLLC shall be treated as a disregarded entity for Ala-
a phased project, enter the actual costs of all phases. To verify these
bama tax purposes and the parent must be entered as the project entity.
costs, the asset depreciation schedule is required to be attached to the
Form INT-2. The schedule should include the description, in-service date
Qualified Subchapter S Subsidiaries (Q-subs) under 26 U.S.C. Sec-
and cost of each asset. See Section 40-18-190(2), Departmental Rule
tion 1361(b)(3) shall be treated as disregarded entities for Alabama
810-2-7-.01(2)(c), or Section 40-18-240(1) for specific inclusions and
income tax purposes. If the investing company is a Q-sub, the parent
exclusions of capital costs.
must be entered as the project entity.
Line 6a – Add 5a through 5j and enter total here. The qualifying pro-
Project Name – Enter name of project if identified as a division or pro-
ject must meet the minimum capital investment for the type of project indi-
ject name. Enter company Doing Business As (DBA) if project is doing
cated.
business under another name. Enter the name of the SMLLC if the qual-
ifying project is a SMLLC treated as a disregarded entity for tax purpos-
Line 6b – Multiply line 6a by 5%. This is the maximum amount of cap-
es. Enter the name of the Q-sub if the qualifying project is a Q-sub.
ital credit available to be applied against the income tax or financial insti-
tution excise tax liability generated by or arising out of the qualifying pro-
Address – Enter the address to which all correspondence should be
ject each year for 20 years, beginning in the year the project is placed in
directed regarding the project.
service.
Location of Project – Enter the project’s physical address.
Line 7 – Enter the number of new employees hired at this project. The
FEIN – Enter the Federal Employer Identification Number.
qualifying project must meet the minimum job requirement for the type of
project indicated. New employees are those persons who have not pre-
NAICS Code – If the predominant business activity is an industrial,
viously been employed at the site on which the project is or will be placed
warehousing or research activity as defined in Code of Alabama 1975
in service or have not been employed by the investing company or com-
Section 40-18-190(a)(8), a warehousing or storage activity, a headquar-
panies in this state; will be employed full-time as a direct result of the pro-
ters facility , or a state docks project as defined in Section 40-18-240(4),
ject being placed in service; and will be subject to the personal income
enter the 2007 North American Industrial Classification System (NAICS)
tax imposed by Section 40-18-2, Code of Alabama 1975, upon com-
code for the project.
mencement of employment at the project. Jobs must be provided begin-
Project Filing Status – Check the applicable box.
ning with the date which is not later than one (1) year after the project is
placed in service and continuing each year thereafter. For warehousing or
Line 1a – Check the applicable box. See “Statutory Requirements for
storage activity projects, jobs must be provided beginning with the date
Qualifying Projects” for project descriptions.
which is not later than two (2) years after the project is placed in service
Line 1b – Indicate if project is located in a Favored Geographic Area
and continuing each year thereafter.
(FGA). This designation is determined at the time the Form INT is filed for
the project.
A project that qualifies in a FGA will continue to be a qual-
Line 8 – Enter the average hourly wage of the new employees of the
ified FGA project, even if the county later loses its designation as a FGA
project. Section 40-18-193(a) requires the average hourly wages for all
as long as the project otherwise remains in compliance with the law.
new employees at the qualifying project be not less than the base wage
requirement no later than one year after the project is placed in service
Line 2 – Briefly describe the type of trade or business that the project
and during each year the capital credit is available. For projects whose
is engaged in. For projects that do not require a NAICS code, provide a
Form INT was filed after May 22, 2009, the base wage requirement is the
detailed description that will identify the activities as qualifying activities.
lesser of the indexed hourly wage or the average hourly wage of the
Attach additional sheets if necessary.
county where the project is located, excluding benefits. For these pro-
Line 3 – Enter a full description of the activities of the project. Please
jects, the base wage requirement is determined as of the date the Form
be detailed in the activities of the project. If the project was completed in
INT for the project was filed with the Department and will remain constant
throughout the life of the credit. To verify the wage and new employee require-
mencement of the project.
ments, a list of all employees working at the project should be attached to
Line 9b – Check applicable box. If the investing company closed a facility
Form INT-2. The list should include employee name, social security number,
in Alabama within two years of the project being placed in service, list the date
date of hire, date of termination (if applicable) and average hourly wage.
of the closure for the facility, the number of employees at the facility on the date
Projects whose Form INT was filed on or before May 22, 2009, the base
of closure, and the location of the facility. If an investing company places a
wage requirement is either an average hourly wage of not less than eight dol-
qualifying project in service within two years following a facility closure, only
lars ($8) per hour or an average total compensation of not less than ten dol-
the number of employees in excess of the number of employees who worked
lars (10) per hour, including benefits.
at the existing facility at the time of the closure shall be treated as new employ-
ees for purposes of meeting the employee requirements.
The above wage requirements do not include employees of direct proces-
sors of agriculture food products. These employees’ wages shall be deter-
Line 10 – Check applicable box. Property previously owned or leased
mined by the local labor market or a source established by the Department of
before the commencement of the qualifying project by the investing company
Revenue if reliable local labor market statistics is not available.
or a related party shall not be included as a part of the project’s capital cost
unless such property was located outside of Alabama at least one year prior
Line 9a – Check the applicable box. The qualifying project must create new
to the date the project is placed in service.
jobs and those jobs must be a net increase in employment for the investing
company. If the investing company reduced its workforce within two years of
Line 12 – Enter the name of the person to which all correspondence should
the qualifying project being placed in service, only the number of employees in
be directed regarding the project. Include a telephone number if different from
excess of the Alabama employee level prior to the reduction shall be treated
the number indicated on the top of this form.
as new employees for purposes of meeting the employee requirements. A two
year look back period from the placed in service date may be required to deter-
Allocations of Capital Credit – List all participants of the project entity
mine if the existing employee base decreased prior to or during the com-
entitled to receive the capital credit. Attach additional sheets if necessary.