HB439 Alabama 2023 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: David FaulknerRepresentative
Republican
Session: Regular Session 2023
Title: Relating to the Growing Alabama Credit; to add Section 40-18-417.8 to the Code of Alabama 1975; to provide that the credit from a parent or holding company may be claimed by the subsidiary in certain circumstances; and to provide retroactive effect.
Summary: The Growing Alabama Credit can be claimed by a subsidiary on a consolidated Alabama return instead of the parent/holding company, under certain conditions, with retroactive effect to 2021.
What This Bill Does
Adds a new provision allowing a subsidiary to claim the Growing Alabama Credit earned by its parent or holding company when both file an Alabama consolidated return and the donation is ultimately paid by the subsidiary. The Department of Revenue will set rules to implement and oversee this change. The measure becomes effective immediately upon passage and applies retroactively to tax years beginning on or after January 1, 2021.

Who It Affects
Parent or holding companies and their subsidiary filers on Alabama consolidated returns, who may have the subsidiary claim the credit instead of the parent if the donation is paid by the subsidiary.
Alabama Department of Revenue, which will adopt rules and oversee implementation and administration of the credit allocation change (including retroactive adjustments).

Key Provisions
Adds Section 40-18-417.8 to allow the credit issued to a parent or holding company to be claimed by the subsidiary when both file a consolidated return and the donation is paid by the subsidiary, for tax years beginning on or after January 1, 2021.
Requires the Department of Revenue to adopt rules for implementation and administration of the act.
The act becomes effective immediately after passage and has retroactive effect to tax years beginning on or after January 1, 2021.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Relating to Growing Alabama Credit