# Form EPT — Alabama Form EPT: the electing pass-through entity tax return

- **Canonical URL:** https://formspedia.com/us/alabama-ept/
- **Last updated:** 2026-11-08
- **Country & Language:** United States (`en-US`)
- **Form:** Form EPT
- **Revision:** 2025
- **Issuing Agency:** Alabama Department of Revenue
- **Tax Area:** Business and corporate tax
- **Who Must File:** Alabama S corporations and Subchapter K entities electing entity-level income tax
- **Filing Method:** Approved e-file software, or a paper return mailed separately from Form 65/20S
- **Where to Send:** Alabama Department of Revenue, Pass Through Entity Section, P.O. Box 327444, Montgomery, AL 36132-7444
- **Filing Deadline:** 15th day of the third month after the tax year ends
- **Legal Basis / Statute:** Alabama Electing Pass-Through Entity Tax Act (Act 2021-1, Act 2021-423)
- **Official Form PDF:** https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25fept.pdf

Form EPT is the Alabama return on which an S corporation or Subchapter K entity pays income tax at the entity level after electing to be taxed as an Electing Pass-Through Entity. The 2025 version, printed as the Electing Pass-Through Entity Payment Return, covers tax years that begin in 2025. It is filed in addition to the entity's Form 65 or Form 20S, never in place of it, and the tax is 5% of each owner's share of taxable income, computed owner by owner on Schedule EPT-K1.

### Who files Form EPT, and who does not

The Alabama Department of Revenue (ALDOR) FAQ on electing pass-through entities says that, for tax years beginning on or after January 1, 2021, any Alabama S corporation as defined in Section 40-18-160 and any Subchapter K entity as defined in Section 40-18-1 may make the election. An entity whose owners are all Alabama residents can elect too. Once the election is in effect for a year, the entity files Form EPT and pays the tax due.

A pass-through entity that does not elect has no Form EPT to file. A partnership that has nonresident owners then stays under the composite payment rules and files Form PTE-C. The FAQ says an electing entity is not required to file the composite return, and an overpayment from the prior year's PTE-C can be moved to the electing entity's account.

The FAQ also sets the income figure the tax is based on. Guaranteed payments are part of taxable income, a net operating loss is not used in the calculation, and income belonging to tax-exempt owners cannot be left out: taxable income follows Section 40-18-162 and is apportioned under Section 40-18-27.

### What changed for 2025: the election checkbox

The 2025 instructions for Form 65 and for Form 20S both open with a "What's New" note. An entity making or revoking the Electing Pass-Through Entity election checks the Electing PTE or Revoking PTE box on the Form 65 or Form 20S. The Electing PTE box has to be checked every year the election is in effect. Form 65 or 20S cannot be amended after the extended due date to make or revoke the election, and a return with neither box checked is treated as a non-electing PTE. Both 2025 returns print the two boxes, and the FAQ says the same for tax periods beginning on or after January 1, 2025.

The 2025 Form EPT itself still prints, above the name block, that Form PTE-E must be filed electronically through My Alabama Taxes (MAT) before Form EPT is filed. The 2025 Schedule EPT-C instructions also describe the election as a Form PTE-E filed in MAT no later than the 15th day of the third month after the tax year closes. The 2024 Form EPT carried the same PTE-E line. ALDOR's published 2025 documents therefore describe two ways of making the election, and none of them says whether a PTE-E is still expected once the box is checked. Before relying on one of them, confirm with the Pass-Through Entity Tax section at 334-242-1170, Option 6, the number ALDOR gives for questions about the election process.

### How to fill out Form EPT, page 1, line by line

Page 1 has a header block, eight numbered lines and the signature area. In the image below, markers 1 to 8 frame the lines with the same numbers, and E frames the printed PTE-E sentence discussed above.

In the header, check CY, FY, SY or 52/53 Week and fill in the tax year dates if the year is not January 1 to December 31, 2025. On the left, check whether the entity is a Subchapter K entity or an S corporation. Three more boxes cover an amended return, an attached Form 2220AL and a federal audit change. Then come the FEIN, federal business code, name, address, suite, city, state, ZIP, country (if not U.S.), a contact person's phone number and the contact person's name.

| Line | Printed label | Where the amount comes from |
| --- | --- | --- |
| 1 | Total Pass-Through Entity Income apportioned to Alabama | Schedule EPT-K1, line 14: the total of column (E) for all owners. |
| 2 | Amount of Tax Due | Schedule EPT-K1, line 15: the total of column (F), which is 5% of column (E) for each owner. |
| 3 | Nonrefundable Credits | Schedule EPT-C, Section C, column 5 total. |
| 4 | Net Tax Due | Line 2 minus line 3. |
| 5a | Overpayment from 2024 | An overpayment from 2024 applied to this year. The FAQ allows a prior-year PTE-C overpayment to be transferred to the electing entity's account. |
| 5b | 2025 Estimated Tax Payments | Quarterly estimates paid for 2025. |
| 5c | Extension and WNR-V Tax Payments | Payments made with an extension and payments under Form WNR-V. |
| 5d | Composite payments and Electing Pass-Through Entity credits | Schedule CP-B, line 3, for tax paid on the filer's behalf by an entity it owns. |
| 5e | Refundable Credits | Schedule EPT-C, Section D, line 3. |
| 5f | Total of all payments/credits | Lines 5a through 5e added. |
| 6 | Amount to be remitted or (overpayment) | Line 4 minus line 5f; an overpayment goes in parentheses. |
| 7a | Overpayment to be credited to 2026 return | The part of an overpayment you want applied to 2026. |
| 7b | Penalty due | Two sub-boxes, Late Payment Estimate and Other, feed this line. |
| 7c | Interest due | Two sub-boxes, Estimate Interest and Interest on Tax. |
| 7d | Total Reductions | Lines 7a, 7b and 7c added. |
| 8 | Total Amount Due/(Refund) | Line 6 plus line 7d. |

Lines 1, 5d, 7b and 7c say "see instructions", but ALDOR's forms pages for 2025 list Form EPT and Schedule EPT-C with no line instructions for Form EPT itself; the only EPT instructions published are those for Schedule EPT-C. The computation rules above come from the FAQ and from the schedules, which print their own arithmetic. For line 1, the FAQ rules in the first section apply: taxable income under Section 40-18-162, apportioned under Section 40-18-27, guaranteed payments included, no NOL.

For lines 7b and 7c, the FAQ describes the charges on estimated tax: an installment not paid by its quarterly due date bears interest at the underpayment rate of 26 U.S.C. Section 6621, as provided by Section 40-18-80.1, plus the 10% penalty of Section 40-2A-11. The 2220AL Attached box is for an entity that attaches Form 2220AL, which ALDOR lists as Estimated Tax Penalties for Corporations (2025 version on its forms page). For a late tax payment, Form PTE-V says only that applicable interest and penalties are assessed; no 2025 EPT document gives a rate for the Late Payment or Interest on Tax boxes.

The signature block asks for the signature, title or position, daytime telephone number and date. A paid preparer signs below and adds a PTIN, firm name, E.I. number, address and telephone number. A checkbox above the perjury statement authorizes ALDOR to discuss the return and attachments with the preparer.

### Schedule EPT-K1: one row per owner

Page 2 of the PDF is Schedule EPT-K1, and it drives lines 1 and 2. Each numbered row (1 to 11) is one owner or shareholder:

- column (A), name, street address, city, state and ZIP

- column (B), Social Security number or FEIN

- column (C), entity type

- column (D), percent ownership

- column (E), taxable income

- column (F), the owner's share of tax due, printed as column (E) times 5%

Line 12 totals columns (E) and (F) for page 2. With more than 11 owners, use the additional page (page 3 of the PDF, 12 rows each, numbered "Additional page" at the top); its line 13 totals go to line 13 on page 2. Line 14 adds lines 12 and 13 in column (E) and goes to Form EPT line 1. Line 15 does the same for column (F) and goes to line 2. Every page carries the entity's FEIN and the tax year. The schedule does not explain the codes expected in column (C).

### Schedule EPT-C and the two entity-level credits

Credits reach Form EPT only through Schedule EPT-C, which is attached to the return. The FAQ names two credits that must be claimed at the electing entity and cannot pass through to owners: the 2017 Alabama Historic Rehabilitation Tax Credit and the Railroad Modernization Act credit. Other incentive credits pass through on Schedule PC with the Form 65 or 20S.

Both credits on Schedule EPT-C need MAT approval first. The 2025 EPT-C instructions say to log in to MAT, pick the Pass Through Entity Tax account, select "Submit a Credit Claim" and attach the certificate documents there.

- Section A takes the tax from Form EPT line 2.

- Section B, Part A, lines 1a to 1c list each historic rehabilitation project with its project number, placed-in-service date and credit amount. The instructions describe a credit of 25% of qualified rehabilitation expenditures, capped at $5,000,000 per certified rehabilitation, or $50,000 for a certified historic residential structure.

- Section B, Part B is the rail credit. Check line 1a for a Department of Commerce certificate or line 1b for a transfer credit certificate. A taxpayer holding a transfer certificate is not eligible for the refundable amount.

- Section C applies each credit row by row against the remaining tax; the column 5 total is Form EPT line 3.

- Section D, line 3 adds the refundable excess of both credits and goes to Form EPT line 5e.

### Schedule CP-B on line 5d

Schedule CP-B is attached when the electing entity is itself an owner of another Alabama S corporation, partnership, estate or trust that paid composite tax or electing pass-through entity tax on its behalf. Columns A to C give that entity's name, FEIN and the amount paid for you; columns D to F flag and identify a disregarded entity whose payment it was. Section B, line 3, the total of all pages, goes to Form EPT line 5d.

### When Form EPT is due, extensions and estimated tax

Form EPT is due on the 15th day of the third month after the tax year closes, March 15 for a calendar year. If a federal extension was granted, Alabama recognizes it, and the FAQ says the federal Form 7004 goes with the Form 65 or 20S. The extension covers filing only: Form PTE-V states that full payment is due by the original due date.

An electing entity with an Alabama income tax liability over $500 must pay estimated tax under Section 40-18-80.1. Each installment is 25% of the required annual payment, generally the lesser of 100% of the tax on the current return or 100% of the tax on the prior year's return. Calendar-year installments are due April 15, June 15, September 15 and December 15; fiscal-year installments on the 15th day of the fourth, sixth, ninth and 12th months.

According to the FAQ, the prior-year safe harbor applies only when an entity is transitioning to an electing PTE. Its figure is then the total of lines 1 through 17 in the Alabama column of the Form 65 or Form 20S Schedule K, multiplied by 5%. If an S corporation shows a loss on those lines, the safe harbor does not apply; a Subchapter K entity with a prior-year loss uses the current-year EPT liability.

If a pass-through entity paid estimates and in the end did not elect, it requests a refund on Form PTE-C, listing the estimates on line 5b.

### How the tax shows up on Form 65 and Form 20S

The amount on Form EPT line 2 is repeated on the information return. On Form 65 it goes in the Apportioned Amount column of Schedule K, line 23; on Form 20S, Schedule K, line 25. The federal amount and apportionment factor columns stay empty on that line. The tax is also an addition on Schedule A: line 4 of the Form 65 schedule and line 1 of the Form 20S schedule.

Owners claim a refundable credit equal to their pro rata or distributive share of the tax the entity paid. The FAQ notes that Act 2021-423 creates no filing requirement for an owner who had none, but an owner who wants the credit has to file a return and report its share of the entity's income.

### Where to get the 2025 Form EPT and where to send it

The [2025 Form EPT](https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25fept.pdf) is a three-page fillable PDF (page 1, Schedule EPT-K1 and the additional page), listed on ALDOR's forms page under form year 2025. Schedule EPT-C and its instructions are separate downloads.

ALDOR's list of approved 2025 e-file providers includes Form EPT for several products, filed with either Form 65 or Form 20S. On paper, the top of the form says not to attach it to or mail it with Form 65 or 20S: it is mailed separately. Both instructions booklets repeat that Form EPT and the EPT payment are not attached to the information return. ALDOR's mailing address page gives the same box whether or not a payment is enclosed:

Alabama Department of Revenue
Income Tax Administration Division, Pass Through Entity Section
P.O. Box 327444
Montgomery, AL 36132-7444

Make a check payable to Alabama Department of Revenue and write "Form EPT", the tax year and the FEIN on it. A paper payment goes with Form PTE-V, the pass-through entity payment voucher, checking EPT as the form type; the voucher instructions say not to staple or attach the payment or voucher to the return. A single business tax payment of $750 or more must be made electronically under Section 41-1-20, through MAT (ACH debit) or ACH credit after approval on Form EFT. No PTE-V is sent for an electronic payment. Corporations filing Form 20C use a different voucher, [Form BIT-V](/us/alabama-bit-v/).

### Questions about Form EPT

#### Does an electing partnership still file Form PTE-C for nonresident partners?

ALDOR's FAQ says an entity that elects is not required to file the composite return. Without the election, partnerships make composite payments under Section 40-18-24.2.

#### Is Form EPT due on the extended date of Form 65?

The federal extension recognized for Form 65 or 20S extends the time to file, not to pay. Tax not paid by the original due date, March 15 for a calendar year, is late.

#### Can Form EPT be filed electronically?

ALDOR's approved software list for 2025 shows Form EPT e-filing under both Form 65 and Form 20S. The paper return goes to P.O. Box 327444 by itself.

### Official sources

- Alabama Department of Revenue, [Form EPT, Electing Pass-Through Entity Payment Return, 2025, with Schedule EPT-K1](https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25fept.pdf)

- Alabama Department of Revenue, [Forms: Electing Pass-Through Entity Payment Return (form year 2025)](https://www.revenue.alabama.gov/forms/electing-pass-through-entity-payment-return-6/)

- Alabama Department of Revenue, [Electing Pass-Through Entity FAQ](https://www.revenue.alabama.gov/individual-corporate/electing-pass-through-entities/)

- Alabama Department of Revenue, [Schedule EPT-C, Electing Pass-Through Credits, 2025](https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25feptc.pdf) and [instructions](https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25feptcinstr.pdf)

- Alabama Department of Revenue, [Schedule CP-B, Composite Payments/Electing Pass-Through Entity Credits](https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25scheccpb.pdf)

- Alabama Department of Revenue, [Form PTE-V, Pass Through Entity Payment Voucher](https://www.revenue.alabama.gov/wp-content/uploads/2026/01/fptev.pdf)

- Alabama Department of Revenue, [2025 Form 65 instructions](https://www.revenue.alabama.gov/wp-content/uploads/2025/12/25f65instr.pdf) and [2025 Form 20S instructions](https://www.revenue.alabama.gov/wp-content/uploads/2025/12/25f20sinstr.pdf)

- Alabama Department of Revenue, [Forms: Form 2220AL, Estimated Tax Penalties for Corporations (2025)](https://www.revenue.alabama.gov/forms/estimated-tax-penalties-for-corporations-4/)

- Alabama Department of Revenue, [Forms Mailing Addresses](https://www.revenue.alabama.gov/individual-corporate/forms-mailing-addresses/)

- Alabama Department of Revenue, [Authorized e-file providers for 2025](https://www.revenue.alabama.gov/individual-corporate/authorized-alabama-corporate-excise-partnership-business-privilege-and-fiduciary-income-tax-e-file-providers-for-2025/)

- Alabama Department of Revenue, [Form EPT, 2024](https://www.revenue.alabama.gov/wp-content/uploads/2025/01/24fept.pdf) (for the PTE-E line)

- Alabama Department of Revenue, [Notice: Alabama Electing Pass-Through Entity Tax Act guidance](https://www.revenue.alabama.gov/notice-alabama-electing-pass-through-entity-tax-act-guidance/)