Alabama 2025 Regular Session

Alabama Senate Bill SB52 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB52INTRODUCED
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3	3	SB52
4	4	PW65REE-1
5	5	By Senators Singleton, Coleman, Coleman-Madison, Stewart
6	6	RFD: Finance and Taxation Education
7	7	First Read: 04-Feb-25
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12	12	5 PW65REE-1 01/29/2025 JF (L)JF 2025-386
13	13	Page 1
14	14	First Read: 04-Feb-25
15	15	SYNOPSIS:
16	16	This bill would allow an Alabama employer to
17	17	claim a tax credit on Alabama income taxes or financial
18	18	institution excise taxes for an employee targeted under
19	19	the federal Work Opportunity Tax Credit
20	20	Program.
21	21	A BILL
22	22	TO BE ENTITLED
23	23	AN ACT
24	24	Relating to tax credits; to provide a tax credit to
25	25	Alabama employers for employees targeted under the federal
26	26	Work Opportunity Tax Credit Program; and to allow for the
27	27	adoption of rules.
28	28	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
29	29	Section 1. (a) An Alabama income tax credit and
30	30	financial institution excise tax credit is hereby established
31	31	for Alabama employers who hire individuals included within
32	32	targeted groups under the federal Work Opportunity Tax Credit
33	33	Program, as described in the federal Consolidated
34	34	Appropriations Act (P.L. 116-260). The amount of the credit
35	35	shall be equal to the federal tax credit taken by the
36	36	taxpayer, up to one thousand dollars ($1,000), and shall be
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64	64	28 SB52 INTRODUCED
65	65	Page 2
66	66	taxpayer, up to one thousand dollars ($1,000), and shall be
67	67	available in the tax year during which the employee has
68	68	completed 12 consecutive months of employment.
69	69	(b) The credit shall be allowed against the tax imposed
70	70	by Chapter 16 or Chapter 18 of Title 40 of the Code of Alabama
71	71	1975. This tax credit shall not be allowed to decrease a
72	72	taxpayer's tax liability to less than zero. The credit is not
73	73	refundable or transferable and shall be available, on a pro
74	74	rata basis, to the owners or members of qualified Alabama
75	75	business employers that are entities taxed as an Alabama S
76	76	corporation or under subchapter K of the Internal Revenue
77	77	Code.
78	78	(c) In no event shall the credits in this section be
79	79	allowed in excess of ten million dollars ($10,000,000) for
80	80	each fiscal year that the tax credit is available.
81	81	(d) The tax credit provided in this section may be
82	82	claimed for the tax year beginning January 1, 2026, and for
83	83	any tax year afterward that the tax credit is available.
84	84	Section 2. The Department of Revenue shall have the
85	85	authority to adopt such rules as necessary to carry out this
86	86	act.
87	87	Section 3. This act shall become effective on January
88	88	1, 2026.
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