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Alabama Court Rules NMTCs not Deductible from County, City Taxes

Wednesday, September 19, 2018 - 10:45AM

The Alabama Court of Civil Appeals overturned a trial court decision and ruled that the state’s new markets tax credit (NMTC) can reduce the financial institutions excise tax (FIET) only by the amount paid to the state. The ruling said the NMTC can’t reduce FIET proceeds paid to counties and municipalities in which the financial institution was located. The decision in Alabama Dept. of Revenue vs. Bryant Bank, Ala., overturns an earlier decision that authorized a credit only against the amount paid to counties and municipalities and not to the state.

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