Schedule QIP-C: Qualified Investment Partnership Certification (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Schedule QIP-C certifies that a partnership meets the criteria for a Qualified Investment Partnership (QIP) for the tax period. It reports qualifying asset and gross income percentages, certain ownership information, and a signed certification.
Who files this form
Schedule QIP-C is used by a partnership to certify that it meets Alabama's Qualified Investment Partnership (QIP) criteria for the tax period.
The form states two qualifying tests:
- Asset test: At least 90% of the cost of total assets must be invested in qualifying investment securities, office facilities, and tangible personal property reasonably necessary to carry on its investment partnership activity in Alabama.
- Gross income test: At least 90% of gross income must come from interest, dividends, distributions, gains or losses from the sale or exchange of qualifying investment securities, and management fees paid by members.
What you'll need
Have the following information ready to complete the certification:
- The partnership's legal name and FEIN.
- The tax year and the beginning and ending dates of the tax period.
- The average qualifying asset percentage and qualifying gross income percentage for the taxable year.
- Owner names and tax identification numbers requested for any applicable checkboxes in items 4 through 7.
- The signing owner, partner, or member's signature, title, and date.
The certification must be filed with the Alabama Partnership Income Tax return for the taxable year.
How to file
- Enter the tax period, partnership's legal name, and FEIN.
- Enter the percentages for the asset test and gross income test.
- Complete the applicable checkboxes in items 4 through 7 and provide the requested owner names and tax identification numbers. These items cover:
- A nonresident owner who actively participates in day-to-day management.
- Investments in qualifying investment securities of an entity majority-owned by a nonresident member.
- A nonresident owner that is also a QIP.
- An owner or member, at any time during the taxable year, who is not a United States person as defined in 26 U.S.C. §7701.
- Have an owner, partner, or member sign and date the certification and enter their title.
- Timely file the certification with the Alabama Partnership Income Tax return for the taxable year.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Not filing the certification on time with the partnership return. The form says the certification must be timely filed with the Alabama Partnership Income Tax return for the taxable year to be valid.
- Signing without reviewing the certification. The signer certifies under penalties of perjury that they have examined it and that, to the best of their knowledge, it is true, correct, and complete.
Questions people ask
What percentages does the form ask for?
It asks for the average qualifying asset percentage and the qualifying gross income percentage for the taxable year. Each test requires at least 90%.
Who signs the certification?
An owner, partner, or member signs it and provides their title and the date.
What if a nonresident owner manages the QIP day to day?
Check item 4 and provide the nonresident owner's name and tax identification number.
Can a nonresident owner also be a QIP?
The form includes a checkbox for this situation in item 6. If it applies, check the box and provide the nonresident owner's name and tax identification number.
Is this certification filed by itself?
The form says it must be timely filed with the Alabama Partnership Income Tax return for the taxable year to be considered valid.