HB285 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

HB285 would create an income tax credit for Alabama employers who hire student workers under 19 during school breaks, after school, or on weekends, with a nine-month retention requirement and a maximum $2,500 credit per student per year in designated zones.

What This Bill Does

It provides an income tax credit equal to the wages paid to each qualifying student worker during the tax year, up to $2,500 per student. Employers claim the credit in the year the nine-month period ends and in the following year. The total credit cannot exceed 50 percent of the taxpayer's tax liability for the year (after other credits) and any unused portion can be carried forward for up to five years. The credit is available to businesses in designated zones such as Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Increment Financing Zones, Enterprise Zone, and certain 8A Business areas.

Who It Affects

• Employers in Alabama that hire and retain qualifying student workers under 19 for at least nine months, particularly those in designated zones.
• Student workers under 19 who are enrolled in school and work during breaks, after school, weekends, or summers.

Key Provisions

• Credit equals wages paid to the student worker during the taxable 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 liability for the year (after other credits) and unused amounts may be carried forward for five years.
• Eligible areas include 8A Business, Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Increment Financing Zones, and Enterprise Zone.
• Effective date is January 1, 2011 for the 2011 tax year and later; act becomes effective immediately after passage.

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