HB206 Alabama 2010 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2010

Title

Income tax, tax credit for hiring certain persons under age 19 during school breaks, after school, or on weekends

Summary

HB206 would create an Alabama income tax credit for employers who hire student workers under 19 during school breaks, after school, or on weekends, if they keep them for at least nine months, with a maximum of $2,500 per student.

What This Bill Does

The tax credit would equal the wages paid to each eligible student worker during the tax year, up to $2,500 per student, for work during school breaks, after school hours, weekends, including summer or official holidays. The credit is claimed in the year the nine-month retention period ends and the following year. It cannot exceed 50% of the taxpayer's tax for the year after subtracting other credits, and any unused portion can be carried forward for five years.

Who It Affects

• Employers and other taxpayers in Alabama who hire eligible student workers under 19 and retain them for at least nine months, because they may claim a tax credit up to $2,500 per student (subject to tax limits and carryforwards).
• Student workers under age 19 who are enrolled in school (or have dropped out) and work during school breaks, after school, weekends, or during the summer/holidays; these jobs enable eligibility for the employer credit and provide work experience.

Key Provisions

• Creates an income tax credit for hiring student workers under 19 during school breaks, after school, weekends, including summers and holidays.
• Requires the employer to retain the student worker as an employee for at least nine months.
• Credit equals wages paid to the student worker during the tax year, up to $2,500 per student per year.
• Credit is claimed in the year the nine-month period ends and the following year.
• Credit cannot exceed 50% of the taxpayer's tax for the year after subtracting other credits, applying to cumulative credits including carryforwards.
• Unused credit can be carried forward for five years.
• Effective date: becomes law on or after January 1, 2011.

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