HB90 Alabama 2010 Session

Summary

Primary Sponsor

Duwayne Bridges

Republican

Session

Regular Session 2010

Title

Income tax, employers creating jobs in certain counties with high unemployment, tax credit, Industrial Relations Department to identify counties, Targeted Job Creation Tax Credit

Summary

The bill would create a nonrefundable $500 per new job tax credit for employers who add jobs in Alabama counties with high unemployment, lasting up to three tax years.

What This Bill Does

It provides an income tax credit of $500 for each new job created in qualifying counties. The credit starts in the tax year the job is created and continues for two additional years if the job remains, with a net-employment increase required at the end of each credit year. The increase must be at least the number of new hires for which the credit is sought plus one for all employees who previously claimed credits, and the credit is applied against Alabama income tax (not refundable or transferable) and nonzero only. The credit is available pro rata to owners of pass-through entities taxed as S- or K-corporations. Qualifying counties are those identified by the Department of Industrial Relations as among the 25 counties with the highest unemployment in the preceding year.

Who It Affects

• Employers that create new qualifying jobs in the targeted counties
• Owners of qualified pass-through employers (S-corp or K-corp) who receive the credit pro rata

Key Provisions

• Credit amount: $500 per new job created in the targeted counties
• Duration: Credit begins in the tax year the new job is created and lasts for two additional years, provided the job remains
• Net employment test: Employer must show a net increase in Alabama full-time employees on the last day of each credit year compared to the last day of the baseline year, with the increase meeting the current year's new hires plus prior-year credits
• Tax impact: Credit is against the Alabama income tax (Chapter 18, Title 40), not refundable and not transferable, and cannot reduce tax liability below zero
• Pro rata eligibility: Available to owners of S- or K-corporation passthroughs on a pro rata basis
• Geographic eligibility: Applies only to counties identified by the Department of Industrial Relations as among the 25 counties with the highest unemployment in the preceding year
• Effective date: Applies to tax years beginning on or after January 1, 2010

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation