The Employer Provider Credit is the Employer tax credit for qualifying Alabama childcare providers. Only those childcare providers who meet the eligibility criteria for the employer credit can receive a refund if the credit amount exceeds their tax liability. The tax credit may be passed to the owners of a pass-through entity based on their pro rata share but cannot otherwise be transferred to any other taxpayer.
To receive a credit, eligible taxpayers must first secure a credit reservation through My Alabama Taxes. At the close of the tax year, taxpayers who received a credit reservation must submit a credit claim substantiating their reservation to be awarded a credit. Only taxpayers who received a credit reservation will be eligible to submit a credit claim.
