HB136 Alabama 2010 Session

Summary

Primary Sponsor

Barry Mask

Republican

Session

Regular Session 2010

Title

Income tax, employer and employees, income tax credit for educational advancement and training to be defined by workforce development

Summary

The bill creates a Back to School Tax Credit that offers a 50% income tax credit to eligible employees and employers for costs of additional education and training to prepare for higher‑paying, more demanding jobs.

What This Bill Does

It would provide a tax credit equal to 50% of qualifying education and training costs paid or incurred during the tax year. The credit would be used to reduce Alabama income tax, but it cannot reduce tax liability below zero and is not refundable or transferable. Owners of qualified employers that are S or K corporations would receive the credit on a pro rata basis. The specific definitions of qualifying individuals, qualifying employers, and qualifying costs would be set by workforce development.

Who It Affects

• Qualified individuals (adult workers seeking educational advancement or training) would receive a tax credit equal to 50% of their qualifying education costs against their Alabama income tax.
• Qualified employers (employers that sponsor or pay for training) would receive a 50% credit against their Alabama income tax for their qualifying costs, with owners of qualified S or K corporations receiving a pro rata share.

Key Provisions

• Name of Act: Back to School Tax Credit.
• Section 2: Establishes a nonrefundable income tax credit equal to 50% of qualifying costs for the tax year, against the Alabama income tax, not allowing the tax credit to reduce liability below zero, and available on a pro rata basis to owners of qualified employers taxed as S or K corporations.
• Section 2(b): Qualifying definitions to be provided by workforce development for Qualifying Individual, Qualifying Employer, and Qualifying Costs.
• Section 3: Severability — if part of the act is invalid, the rest remains in effect.
• Section 4: Repeal of laws that conflict with this act.
• Section 5: Effective for tax years beginning on or after January 1, 2010.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation