HB117 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Thad McClammy
Democrat
Session: Regular Session 2011
Title: Class 3 municipalities, organized under Act 618, 1973 Reg. Sess., income tax credit for hiring certain persons under age 19 during school breaks, after school, or on weekends
Summary: HB117 would create an income tax credit for businesses in Class 3 municipalities to hire and retain student workers under 19 during school breaks, after school, or weekends, with certain limits.
What This Bill Does
If enacted, eligible employers can claim an income tax credit equal to the student worker’s wages paid in the taxable year (up to $2,500 per student) for retaining the worker for at least nine months. The credit is claimed in the year the nine-month period ends and the following year. The credit cannot exceed 50% of the taxpayer’s tax due for the year (after other credits), and any unused portion can be carried forward for five years. The credit is available to employers in specific zones (8A, Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Incremental Financing Zones, Enterprise Zone) and takes effect for tax years beginning January 1, 2012.

Who It Affects
Businesses located in Class 3 municipalities that hire and retain student workers under 19 for at least nine months; they may receive a tax credit up to $2,500 per student, subject to the 50% of tax due limit and carryforward rules.
Student workers under 19 who are enrolled in school and work during school breaks, after school, weekends, or summers for eligible employers; they are the recipients of employment that enables the credit for their employers.

Key Provisions
Section 1: Establishes an income tax credit for employing a student worker under 19 who is enrolled in school, for work during breaks, after school, weekends, or summers, provided the student is retained for at least nine months; credit equals wages paid up to $2,500 per student per year, claimed in the year the nine-month period ends and the following year.
Section 2: The credit cannot exceed 50% of the taxpayer's tax due for the year (after other credits) and may be carried forward for five years; applies to the total credits for the year including carryforwards.
Section 2(a): Eligible areas for the credit include 8A Business, Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Increment Financing Zones, and Enterprise Zone.
Section 3: The credit becomes effective January 1, 2012, for the 2012 tax year and later.
Section 4: The act takes effect immediately after passage and governor approval, or otherwise becomes law.

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