INT-4: Notice of Change of Ownership, Interest, or Participation of Interest in Income Tax Capital Credit Project (Revision)

Who files this form

The project entity must file Form INT-4 when, during the period it qualifies for the capital credit, there is a change in the investing companies participating in the project or in their shareholders, partners, members, owners, or beneficiaries.

Report changes such as a sale of the project, a merger, a change in partnership members or S corporation shareholders, or an assignment of interest. The project entity must complete and file this form for the taxpayers to receive the income tax credit.

What you'll need

Have these records and details available to complete the form:

• The original project number assigned by the Alabama Department of Revenue, the NAICS code, and the project's physical address in Alabama.
• The project type originally reported on Forms INT and INT-2.
• The original placed-in-service date from Form INT-2, line 4, and actual project capital costs from Form INT-2, line 6.
• The project entity's name, project name, address, FEIN, telephone number, and filing status before and after the change.
• The effective date of the change, including month, day, and year, and a detailed description of what changed.
• The capital credit contact person's name and telephone number if different from the number already provided.
• A complete list of current participants receiving the credit, including names, addresses, Social Security numbers or FEINs, and each participant's percentage allocation. Attach additional sheets if needed.

How to file

1. Complete all portions of Form INT-4, including the project information before and after the change.
2. Complete the allocation schedule with every current participant entitled to receive the capital credit. Attach additional sheets if necessary.
3. Have a person authorized to complete the form sign and enter their title and the date.
4. Mail the completed form to:

Alabama Department of Revenue

ATTN: Capital Credit Program Administrator

P.O. Box 327001

Montgomery, AL 36132-7001

Common mistakes

• Leaving out a participant. The instructions warn that the capital credit will be disallowed if an investing company or participant is not listed on the allocation schedule.
• Omitting the original project number. It must appear on this form and all correspondence with the Department about the capital credit project.
• Changing the project type because ownership changed. Use the project type originally filed on Forms INT and INT-2. It does not change during the project's life.
• Using an old SIC code. Projects originally approved using a SIC code must convert to a NAICS code. For a Headquarters Facility, enter 000000.
• Giving incomplete change details. Include the month, day, and year of the change and provide a detailed description.
• Checking multiple filing statuses. Check only one filing status in each before-and-after section.

Questions people ask

Does a change in ownership increase the available credit or start a new credit period?

No. A change in ownership or assignment of interest does not increase the available capital credit. Purchasers, assignees, and successors receive it under the same conditions and for the same period as the originally eligible investing companies.

How is the capital credit allocated among participants?

The credit is allocated based on each eligible participant's distributive share of the project's Alabama taxable apportionable income, whether or not that income is distributed.

What if there is not enough room to list every participant?

Attach additional sheets. You must provide a complete list of all participants entitled to receive the capital credit after the change.

Who should be listed as the project entity for a disregarded single-member LLC or a Q-sub?

For a single-member LLC treated as a disregarded entity, enter the parent as the project entity and the LLC's name as the project name. For a Qualified Subchapter S Subsidiary, or Q-sub, enter the parent as the project entity and the Q-sub's name as the project name.

Where can I ask questions about this form or the capital credit?

Contact the Alabama Department of Revenue at (334) 242-1175.

Official sources

• https://www.revenue.alabama.gov/wp-content/uploads/2021/10/INT4.pdf