(a) With respect to credit unions only, net income means financial statement income which is the final net income amount, total revenue less total expenses, calculated for financial statement purposes and reported to the Internal Revenue Service as a tax exempt organization and to the Alabama Credit Union Administration or other government regulatory authority as appropriate, less the subtractions specified in subsection (b) and as allocated and apportioned to Alabama according to rules adopted by the Department of Revenue pursuant to Section 40-16-4.
(b) Subtractions. The following items shall be subtracted from financial statement income for purposes of computing the net income of a credit union under this chapter:
(1) Dividends received from other credit unions and credit union service organizations as defined by federal law and the regulations of the National Credit Union Administration.
(2) In lieu of deductions for losses or bad debts, reasonable additions to reserves for losses, bad debts, and extraordinary expenses.
Last modified: May 3, 2021