Schedule BC: Business Credits (2024)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Schedule BC (Form 20C) is used to report and calculate business credits for 2024 and is attached to Form 20C. It records current tax liability and allowable credits, including credits for employment, education, investment, and historic rehabilitation.
Who files this form
Schedule BC is the business credit schedule attached to Alabama Form 20C. Use it to report the listed current-year business credits and prior-year credit carryforwards used for tax year 2024.
Enter the name or names shown on Form 20C and the federal employer identification number.
What you'll need
Have Form 20C available, including the tax due on page 1, line 17. Depending on the credits you claim, you will also need:
- Basic Skills Education: Your approved certification notice from the Alabama Department of Education. You must attach it. The form also asks for your certification number, provider information, employee work history, and expenses available for credit.
- Certificate-based credits: The applicable tax credit certificates for historic rehabilitation, Career - Technical Dual Enrollment, Apprenticeship, or Railroad Modernization. For the Port Credit, use the amount certified by the Department of Commerce.
- Credits from other entities: Schedule K-1 information and the entity's FEIN for the Coal, Growing Alabama, or Innovate Alabama credit. Attach a schedule if the credit comes from more than one entity.
- Income Tax Capital Credit: Attach Form KRCC if received and Schedule KRCC-B if completed.
- Prior-year carryforwards: The credit type, year generated, original amount, and amounts used in earlier years.
Other credit sections ask for applicable costs, contributions, production figures, employee counts, or project information.
How to file
- Attach Schedule BC to Form 20C.
- Before completing Schedule BC, submit business credits marked with an asterisk through My Alabama Taxes (MAT). The form refers to instructions for submission details, but those instructions were not provided.
- For the Income Tax Capital Credit, Form AR-C must be filed on MAT.
- Transfer total nonrefundable credits from Section E, line E3, to Form 20C, page 1, line 18.
- Transfer total refundable credits from Section F, line F3, to Form 20C, page 1, line 20f.
The supplied text does not give a mailing address or instructions for electronically filing Form 20C.
Common mistakes
- Skipping the MAT submission: Credits marked with an asterisk must be submitted through MAT before Schedule BC is completed.
- Leaving out required attachments: Attach the approved Basic Skills Education certification notice and any required Form KRCC, Schedule KRCC-B, or schedule for credits from multiple entities.
- Overlooking eligibility warnings: The Full Employment Act credit is not available if you answer “No” to the question about being in business with 50 or fewer full-time and/or part-time employees on June 9, 2011. The Veterans Employment Act business start-up credit is not available if the business did not start after April 2, 2012.
- Treating a transferred Railroad Modernization credit as refundable: The form says a refundable credit is not allowed for a Transfer Credit Certificate.
- Completing carryforward worksheets when told to skip them: Do not complete J8, M8, or Q8 if the corresponding line J7, M7, or Q7 is zero.
Questions people ask
Where do I find the tax liability to enter in Section A?
Use the tax due from Form 20C, page 1, line 17. Also enter it in Section C, Part A, Column 4.
How is the Basic Skills Education credit calculated?
If the answers to both B4 and B5 are yes, enter the expenses available for credit on B6. Multiply B6 by 20% to calculate the allowable credit on B7. Those questions ask whether participants were continuously employed for at least 16 weeks and worked at least 24 hours each week.
Where do I report unused credits from earlier years?
Use Section D. The Career - Technical Dual Enrollment, Growing Alabama, and Innovate Alabama carryforwards are subject to the limits calculated in their Section B carryforward worksheets.
Which refundable credits appear on Schedule BC?
Section F lists the 2017 Alabama Historic Rehabilitation Tax Refundable Credit and the Railroad Modernization Act of 2019 Refundable Credit. For the railroad credit, Section F directs you to enter the excess credit only if Section B, Part P, line P1a is checked.