SB424 Alabama 2010 Session

Summary

Primary Sponsor

Quinton Ross

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

SB424 creates an income tax credit for businesses that hire student workers under 19 during school breaks, after school, weekends, or summers, with certain limits and zone eligibility.

What This Bill Does

If passed, a taxpayer could claim a credit equal to 100% of wages paid to each eligible student worker, up to $2,500 per student per year. The credit is claimed in the year the nine-month work period ends and the following year, but is limited to 50% of the taxpayer's tax for the year after considering other credits, with unused credits allowed to be carried forward up to five years. The credit is available to businesses operating in designated areas listed in the bill, including 8A Business, Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Incremental Financing Zones, and Enterprise Zone.

Who It Affects

• Student workers under 19 who are enrolled in school and work during school breaks, after school, weekends, summers, or official holidays.
• Taxpayers (businesses) operating in the designated zones who hire and retain eligible student workers for at least nine months and may claim the tax credit for these workers.

Key Provisions

• The credit equals wages paid to each eligible student worker during the taxable year, up to a maximum of $2,500 per student.
• The credit can be claimed in the year the nine-month employment period ends and the following year.
• The credit cannot exceed 50% of the taxpayer's tax for the year after accounting for other credits; unused credits may be carried forward for up to five years.
• Eligible areas include 8A Business, Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Incremental Financing Zones, and Enterprise Zone.
• The program applies starting January 1, 2011, for the 2011 tax year and subsequent years.
• The act becomes effective immediately after passage and governor approval (and otherwise becomes law).

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