Schedule OC: Other Available Credits (Form 40 or 40NR) (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Schedule OC (Form 40 or 40NR) reports and calculates other available tax credits for 2025. It includes credits for taxes paid to other states, certain employment and business activities, rural physicians, and qualified irrigation or reservoir systems, and attaches to Form
Who files this form
Use 2025 Alabama Schedule OC to report the credits listed on the schedule with Form 40 or Form 40NR. Attach Schedule OC to your return.
The schedule covers credits for individuals and businesses, including adoption, rural physicians, education, employment, historic rehabilitation, childcare, and certain credits reported on Schedule K-1.
The credits for taxes paid to other states in Part A and taxes paid to a foreign country in Part I are for Form 40 only.
What you'll need
Have your Form 40 or Form 40NR available, including the name, Social Security number, and tax amount shown on the return. Other documents depend on the credit you claim:
- Taxes paid to other states: Schedule CR.
- Enterprise Zone credit or exemption: Schedule EZK1 or Schedule EZ.
- Basic Skills Education Credit: A copy of your approved certification notice from the Alabama Department of Education. Attach it with this schedule to your return.
- Credits from an entity: Schedule K-1 and the entity's FEIN. Attach a separate schedule when the applicable credit line requires one for credits from more than one entity.
- School Transfer Credit: Schedule AATC.
- Adoption Tax Credit: Schedule AAC.
- Certificate-based credits: The tax credit or transfer certificate identified in the applicable part of Schedule OC.
- Port Credit: Attach a copy of your Certification of Port Credit from the Alabama Department of Commerce.
- Income Tax Capital Credit: Attach Form KRCC and Schedule KRCC-I to your Alabama return.
How to file
Attach Schedule OC to your 2025 Form 40 or Form 40NR.
- Submit individual credits marked with an asterisk through My Alabama Taxes (MAT) before completing Schedule OC. The form refers to instructions for submission details, but those instructions are not provided here.
- Complete the applicable credit parts and transfer the amounts to Section C as directed.
- Report applicable prior-year credit carryforwards in Section D.
- Enter the net tax due from Section E, line E5, on Form 40, page 1, line 18, or Form 40NR, page 1, line 20.
- Enter total refundable credits from Section F, line F6, on page 1, line 25, of Form 40 or Form 40NR.
The Section C summary pages state that they can only be submitted or printed in landscape orientation. The supplied text does not give a mailing address or instructions for e-filing the return.
Common mistakes
- Completing Schedule OC before submitting starred credits through MAT. The form requires those submissions first.
- Missing required attachments. The form specifically calls for the Basic Skills Education certification notice, Port Credit certification, and capital credit forms when those credits apply.
- Selecting both irrigation and reservoir options in Part J. You may select either purchase or conversion of an irrigation system or construction of a reservoir, but not both. The pro rata share checkbox may be selected in addition to either option.
- Using foreign currency in Part I. All dollar figures must be in U.S. dollars.
- Ignoring the stop rule in Part F. If line F3 is zero or less, the form says you do not qualify for the Full Employment Act credit.
- Printing the Section C summary pages in portrait orientation. Those pages require landscape orientation.
Questions people ask
Can I use Schedule OC with Form 40NR?
Yes. The schedule attaches to Form 40 or Form 40NR. However, Part A, for taxes paid to other states, and Part I, for taxes paid to a foreign country, are for Form 40 only.
Where do I report a credit from Schedule K-1?
Use the pro rata share or allocated share line in the applicable credit part and enter the entity's FEIN. Where the form directs, attach a schedule if the credit comes from more than one entity.
Can unused credits carry forward?
Some can. The form lists a maximum of 3 years for the Scholarship Granting Organization and Career–Technical Dual Enrollment credits, 10 years for the 2013 Alabama Historic Rehabilitation Tax Credit, and 5 years for several others, including the Qualified Irrigation System/Reservoir System Tax Credit. The carryforward rules depend on the credit.
Which credits appear in the refundable-credit calculation?
Section F lists the School Transfer Credit, Alabama Adoption Tax Credit, 2017 Alabama Historic Rehabilitation Tax Credit, Childcare Facility Tax Credit, and Employer Provider Credit. It calculates each amount by subtracting the credit applied in Section C, Column 5, from the allowable credit in Column 3.