SB333INTRODUCED
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SB333
5ZDI336-1
By Senators Singleton, Coleman-Madison, Hatcher, Coleman,
Smitherman
RFD: Finance and Taxation Education
First Read: 18-Apr-24
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6 5ZDI336-1 04/16/2024 JF (F)JF 2024-1550
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First Read: 18-Apr-24
SYNOPSIS:
This bill would allow an Alabama employer to
claim a tax credit on Alabama income taxes or financial
institution excise taxes for an employee eligible under
the federal Work Opportunity Tax Credit Program.
A BILL
TO BE ENTITLED
AN ACT
Relating to tax credits; to provide a tax credit to
Alabama employers for employees eligible under the federal
Work Opportunity Tax Credit Program; and to allow for the
adoption of rules.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) An Alabama income tax credit and
financial institution excise tax credit is hereby established
for Alabama employers who hire individuals included within
targeted groups under the Work Opportunity Tax Credit Program,
as described in the federal Consolidated Appropriations Act
(P.L. 116-260). The amount of the credit shall be equal to the
federal tax credit taken by the taxpayer, up to one thousand
dollars ($1,000), and shall be available in the tax year
during which the employee has completed 12 consecutive months
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during which the employee has completed 12 consecutive months
of employment.
(b) The credit shall be allowed against the tax imposed
by Chapter 16 or Chapter 18 of Title 40 of the Code of Alabama
1975. This tax credit shall not be allowed to decrease a
taxpayer's tax liability to less than zero. The credit is not
refundable or transferable and shall be available, on a pro
rata basis, to the owners or members of qualified Alabama
business employers that are entities taxed under subchapters S
or K of the Internal Revenue Code.
(c) In no event shall the credits in this section be
allowed in excess of ten million dollars ($10,000,000) for
each fiscal year that the tax credit is available.
(d) The tax credit provided in this section may be
claimed for the tax year beginning January 1, 2025, and for
any tax year afterward that the tax credit is available.
Section 2. The Department of Revenue shall have the
authority to adopt such rules as necessary to carry out this
act.
Section 3. This act shall become effective on January
1, 2025.
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