PTE-C - Schedule PTE-CK1 - Instructions for the Preparation of the Alabama Department of Revenue Form PTE-C and Schedule PTE-CK1 Nonresident Composite Payment Return - 2009

Sep 27, 2026

Uploaded by Mary Man

Instructions explain the 2009 Alabama Department of Revenue Form PTE-C and Schedule PTE-CK1 nonresident composite payment return, including changes created by the Entertainment Industry Incentive Act of 2009. The guidance outlines when Subchapter K entities must file a composite return and remit composite payments for nonresident owners or members, key exemptions (e.g., estates, trusts, business trusts, and generally Alabama QIPs), due dates for certain publicly traded partnerships and QIPs, and how relief requests are handled. It also covers Qualified Production Company rebates and Qualified Investment Partnership certification and income tax treatment for nonresident members.

LanguageEnglish

CategoryExam

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

New issues for preparing the 2009 Alabama Form PTE-C

Composite return and composite payment requirements for Subchapter K entities

Exemptions and special considerations

Publicly traded partnerships composite return due dates

Entertainment Industry Incentive Act of 2009 rebates and requirements

Qualified Production Company rebates

Qualified Investment Partnerships (QIP) certification and treatment

Income tax exemptions and taxable scenarios for nonresident QIP members

Implementation and regulations status

FORM PTE-C SCHEDULE PIU-CIO1 INSTRUCTIONS FOR THE PREPARATION OF ALABAMA DEPARTMENT OF REVENUE Form PTE-C and Schedule PTE-CK1 Nonresident Composite Payment Return 2009 New Issues Concerning the Preparation of the 2009 Alabama Form PTE-C New Composite Payment and Return Requirements for Partnerships. The Entertainment Industry Incentive Act of 2009 , Alabama Act Number 2009-144 passed during the 2009 legislative session, created new composite payment and return requirements for Subchapter K entities, effective for tax years beginning on or after January 1 , 2009. Under the new law, a partnership, or other entity classified as a Subchapter K entity, is required to file a composite return and make composite payments on behalf of its nonresident owners or members if there are one or more nonresident owners or members at any time during the taxable year. The law specifically exempts estates, trusts, and business trusts from the requirement to make a composite payment and file a composite return. The law generally exempts Alabama QIPs from the composite payment and return requirement. An annual composite return is due for a publicly-traded partnership that is treated as a partnership in accordance with 26 U.S.C. §7704(c) . If a composite return is not timely and properly filed by the publiclytraded partnership for a taxable year, then a composite payment is due for the tax year from the partnership in accordance with §40-18- 24.2 , Code of Alabama 1975. Special considerations such as short years and changes of ownership will be addressed on a case-by-case basis. Requests for relief should be submitted to the Department describing the circumstances and type of relief sought. The new law made no changes to the composite payment and composite return requirements for S corporations. Regulations to implement the new law were being drafted at the time this document was finalized. Qualified Production Company Rebates. The Entertainment Industry Incentive Act of 2009 , Alabama Act Number 2009-144 passed during the 2009 legislative session, created a rebate available to Qualified Production Companies, as that term is defined in the law. The amount of the rebate is equal to 25 percent of the Production Expenditures (adjusted as specified in the law) of a State-Certified Production. The rebate may be applied to any income tax liability applicable to the Qualified Production Company. If the rebate exceeds the income tax liability of the Qualified Production Company, the excess shall be rebated to the Qualified Production Company. Line 5d of the 2009 Form PTE-C has been added for the Qualified Production Company to claim the rebate allowed by the new law. Qualified Investment Partnerships. The Entertainment Industry Incentive Act of 2009 created §40-18-24 .2 , Code of Alabama 1975, which establishes an entity referred to as a Qualified Investment Partnership (QIP) . The law generally defines a QIP as a partnership or other entity classified as a subchapter K entity, or a business trust as defined in §40-18-1 , Code of Alabama 1975, that for a tax period meets the gross income and asset requirements for a Qualified Investment Partnership as required by §40-18-24 .2 ; and, for which an authorized officer, partner, member or manager of the entity has certified for the tax period that the entity meets the gross income and asset requirements. Proper certification of a QIP requires the completion of Alabama Schedule QIP-C, Qualified Investment Partnership Certification, which must be filed with the Alabama partnership income tax return for the tax period , and is due by the due date of the Alabama partnership income tax return. An Alabama QIP certification cannot be properly filed with an Alabama Form PTE-C. An annual composite return is due for a Qualified Investment Partnership (QIP) , only if the QIP is required to remit a composite payment for a nonresident member. In accordance with §40-18-24 .3 , Code of Alabam

FAQs

Who must file a composite return and make composite payments under the new 2009 Alabama law?

A partnership or other Subchapter K entity must file a composite return and make composite payments on behalf of its nonresident owners or members when any nonresident owner or member exists at any time during the taxable year.

Which entities are exempt from the composite payment and composite return requirements?

The law specifically exempts estates, trusts, and business trusts. It also generally exempts Alabama QIPs from the composite payment and return requirement, and makes clear that S corporations are not changed by the new law.

How does the Qualified Production Company rebate work on the 2009 Form PTE-C?

The rebate equals 25% of Production Expenditures (as adjusted per the law) of a State-Certified Production. If the rebate exceeds the company’s income tax liability, the excess is rebated, and Line 5d is added so the Qualified Production Company can claim the rebate.

Sep 27, 2026

Uploaded by Mary Man