Schedule BC: Business Credits (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Schedule BC (Form 20C) is used to calculate and report business tax credits for 2025 and is attached to Form 20C. It reports current tax liability, current-year credits, and allowable prior-year credit carryforwards.
Who files this form
Use the 2025 Alabama Schedule BC with Form 20C to report the business credits listed on the schedule, including current-year credits and available credit carryforwards from prior years. Attach Schedule BC to Form 20C.
What you'll need
Have Form 20C available for the names, federal employer identification number (FEIN), and tax due from page 1, line 17.
Depending on the credits you claim, you may also need:
- Credit certificates or approvals. The form asks for certificates or certified amounts for several credits, including historic rehabilitation, Career - Technical Dual Enrollment, Port, Railroad Modernization, Alabama Workforce Housing, Employer Tax, Childcare Facility, and Employer Provider credits.
- Basic Skills Education certification. You must attach the approved certification notice issued by the Alabama Department of Education.
- Schedules K-1 and entity FEINs for credits received from other entities. Where the form requests it, attach a schedule if the credit comes from more than one entity.
- Project, expense, contribution, production, or employee information requested for the credits you claim.
- Prior-year credit information, including when each carryforward was generated, the original credit amount, and amounts used in earlier years.
- Form KRCC and Schedule KRCC-B, if applicable to the Income Tax Capital Credit. The form requires these attachments when the corresponding boxes are checked.
How to file
- Submit credits marked with an asterisk through My Alabama Taxes (MAT) before completing Schedule BC. For the Income Tax Capital Credit, Form AR-C must be filed on MAT.
- Enter the tax due from Form 20C, page 1, line 17 in Section A and Section C, Part A, Column 4.
- Complete the applicable credit parts in Section B, the current credit summary in Section C, and the prior-year carryforward information in Section D.
- Enter total nonrefundable credits from Section E, line E3 on Form 20C, page 1, line 18. Enter total refundable credits from Section F, line F5 on Form 20C, page 1, line 20f.
- Attach Schedule BC and the required supporting attachments to Form 20C.
The supplied form does not provide a mailing address or instructions for electronically filing Form 20C.
Common mistakes
- Completing Schedule BC before the required MAT submission. Credits marked with an asterisk must be submitted through MAT first.
- Leaving out required attachments. Attach the approved Basic Skills Education certification notice, applicable KRCC documents, and schedules for credits from multiple entities where requested.
- Treating a transferred Railroad Modernization credit as refundable. Part O states that a refundable credit is not allowed for a transfer credit certificate.
- Completing carryforward calculations when the stated limit is zero. Do not complete J8, M8, or P8 if the corresponding line J7, M7, or P7 equals zero.
Questions people ask
Where do I enter the tax liability used to calculate credits?
Enter the tax due from Form 20C, page 1, line 17 in Section A and Section C, Part A, Column 4.
How is the Basic Skills Education Credit calculated?
Line B7 is 20% of the expenses entered on line B6. The form directs you to enter expenses on B6 if the participants were continuously employed by you for at least 16 weeks and worked at least 24 hours each week. You must also attach the approved Department of Education certification notice.
How long can unused Alabama Workforce Housing Tax Credit be carried forward?
Part Q states that unused Alabama Workforce Housing Tax Credit may be carried forward for a maximum of five years.
Which refundable credits are listed in Section F?
Section F lists the 2017 Alabama Historic Rehabilitation, Railroad Modernization Act of 2019, Childcare Facility, and Employer Provider credits. The Railroad Modernization entry applies if Section B, Part O, line O1a is checked. A transfer credit certificate does not allow a refundable credit.