Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-71 - WITHHOLDING TAX › Section 810-3-71-.03 - Job Development Fee

Current through Register Vol. 42, No. 9, June 28, 2024
Upon the issuance by the Authority of its Project Obligations
				for the purpose of financing a Project for an Approved Company:
(1) The Approved Company may impose a Job
			 Development Fee only on the new employees hired by the Approved Company for a
			 Project. The term "new employees" includes only those individuals who (i) have
			 not previously been employed by the Approved Company in Alabama; (ii) will be
			 employed at the project site; and (iii) will be subject to the personal income
			 tax imposed by Section
			 40-18-2 of the Code upon commencement of employment at the site. An Approved Company
			 may assess and withhold a Job Development Fee from a new employee only during
			 the time such employee is employed at the project site. Accordingly, an
			 Approved Company may not continue to assess and withhold a Job Development Fee
			 from an employee who is no longer employed at the project site.
(2) The Job Development Fee assessed by an
			 Approved Company and withheld from the gross wages of new employees shall be
			 based solely on the wages paid to such employees by the Approved Company. The
			 Job Development Fee withheld from a new employee's wages shall be limited to an
			 amount no greater than the tax that would otherwise be withheld from such
			 employee's wages pursuant to the provisions of subsection (a) through (d) of
			 Section
			 40-18-71 of the
			 Code but for the imposition of the Job Development Fee. Any tax withheld
			 pursuant to subsection (e) of Section
			 40-18-71 of the
			 Code is not a Job Development Fee within the meaning of Section
			 41-10-44.8(b) of the Code and must be remitted by the Approved Company in accordance with the
			 provisions of Section
			 40-18-74 of the Code.
(3) Pursuant to
			 Section
			 41-10-44.8(a),
			 the aggregate Job Development Fee withheld in a given year by an Approved
			 Company from the wages paid to employees at a Project shall not exceed the
			 difference between (1) the sum of the debt service payments made during such
			 year by the Approved Company pursuant to the terms of a Financing Agreement (as
			 that item is defined in Section
			 41-10-44.2); and (2) the sum of the corporate income tax credits claimed by the Approved
			 Company on its state corporate income tax return for such year pursuant to
			 Section
			 41-10-44.8(a)(1) and
			 41-10-44.9.
(4) In determining the aggregate Job
			 Development Fee which may be withheld from an employee's wages in a given year,
			 an Approved Company:
(a) shall apply the
			 limitation in section (3) above on a calendar year basis. Accordingly, if an
			 Approved Company's tax year does not correspond to the calendar year, both the
			 corporate income tax credit and the debt service payments will be prorated to
			 the calendar year;
(b) shall base
			 its computation of the aggregate Job Development Fee which it may withhold from
			 employees wages on an estimate of its state corporate income tax liability for
			 such year;
(c) shall determine the
			 actual amount of the aggregate Job Development Fee which it was entitled to
			 withhold within 90 days of the close of the most recent tax year in which a
			 corporate income tax credit was claimed pursuant to Section
			 41-10-44.8 or
			 41-10-44.9.
(d) shall, if the aggregate Job Development
			 Fee withheld exceeds the maximum allowable pursuant to the limitation of
			 section (3) above, remit the excess Job Development Fee, plus appropriate
			 interest in accordance with Section
			 40-1-44,
			 to the Department by the due date of the company's next corporate income tax
			 return (without regard to extensions).
(e) shall not be entitled to any adjustment
			 of its aggregate Job Development Fee if the amount of such fee is less than the
			 maximum allowable pursuant to the limitation of section (3) above. Taxes
			 withheld and remitted to the Department by an Approved Company pursuant to
			 Section
			 40-18-74 may not be later claimed as Job Development Fees.