HB212 Alabama 2010 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Gregory CanfieldJay LoveJoe HubbardBarry MaskMary Sue McClurkin

Session

Regular Session 2010

Title

Businesses, certain companies that create jobs, tax incentives authorized, requirements and standards for qualification

Summary

HB212 would create broad, county-based tax credits and incentives for Alabama employers that create and maintain new jobs, plus infrastructure and welfare-to-work credits.

What This Bill Does

It would provide annual job tax credits for a wide range of qualifying facilities and new full-time jobs, with credit amounts and duration tied to the county’s development tier and certain conditions. It also creates an infrastructure project credit (50% of eligible expenses, up to $10,000 per project annually, with carry-forward) and a welfare-to-work credit program (wage-based credits with health insurance requirements) that employers can claim. Additionally, credits can be transferred, carried forward up to 15 years, and claimed on consolidated returns, with various rules governing eligibility, verification, and timing.

Who It Affects

• Employers and taxpayers in Alabama that create or expand qualifying jobs or invest in designated infrastructure, who would receive various job, infrastructure, and welfare-related tax credits.
• Counties and their residents, especially those designated as distressed, least developed, underdeveloped, moderately developed, or developed, whose designation affects credit amounts, duration, and eligibility and which can influence local investment and job opportunities.

Key Provisions

• Creates annual jobs tax credits for qualifying facilities (manufacturing, tourism, processing, warehousing, research and development, technology-intensive facilities, and qualifying service-related facilities) based on newly created full-time jobs and county development tier.
• County designations determine per-job credit amounts and duration; distressed counties receive higher credits, with special provisions for counties not traversed by interstate highways and counties near military installations.
• Per-new-job credits vary by county tier (e.g., up to $8,000 in some cases; lower amounts in others) and include an overall per-employee annual cap (generally $5,000, higher in distressed counties).
• Credits generally run for five years beginning in year two after the job is created, provided the minimum level of new full-time jobs is maintained.
• Credit can be earned by passthrough entities (S corporations, partnerships, LLCs taxed as partnerships) and passed to shareholders, partners, or members with rules for allocation and carry-forward (up to 15 years).
• An infrastructure credit allows 50% of eligible expenses for qualifying water, sewer, or road projects, up to $10,000 per project per year, with a 3-year carry-forward; pre-approval and allocation rules apply when multiple beneficiaries exist.
• A welfare-to-work credit rewards employers who hire welfare recipients, with 20%/15%/10% wage credits over the first 36 months, plus additional incentives (e.g., $175 per month for related work in distressed or least developed counties) and a health insurance requirement to claim the credit.
• Credit eligibility and claiming require certification and reporting to the appropriate agencies; rules, hearings, and certifications may be used to substantiate qualification.
• The act includes various transitional and special provisions (e.g., consolidated returns, transferability upon mergers or asset transfers, adjustments for roads removed from the state system, and other targeted boosts).
• The act becomes effective immediately after passage and approval.

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

Subjects

Business and Commerce