SB173 Alabama 2011 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsors

Clay ScofieldPhillip W. WilliamsBill HoltzclawPaul BussmanScott BeasonArthur OrrRoger Bedford, Jr.Trip PittmanBryan Taylor

Session

Regular Session 2011

Title

Income tax credit authorized for employers creating jobs, under certain conditions, Full Employment Act, Secs. 40-18-270, 40-18-271, 40-18-272 repealed; Act 2010-557, 2010 Reg. Sess. repealed

Summary

SB173 repeals the Reemployment Act and creates a Full Employment Act that gives a $1,000 tax credit to small businesses for each new job created paying over $10 per hour, under certain conditions.

What This Bill Does

It repeals the 2010 Reemployment Act. It creates a new income tax credit for small Alabama businesses (50 or fewer employees) that create new full-time jobs paying more than $10/hour. The credit is $1,000 per new job and is available in the tax year after the employee completes 12 months of consecutive employment. To claim the credit, the employer must show a net increase in Alabama full-time employees at the end of each tax year compared to the end of the previous year, with the increase matching the number of new hires claimed plus those for whom credits were claimed in prior years. The credit is nonrefundable, nontransferable, and can be allocated pro rata to owners of pass-through entities (S or K corporations).

Who It Affects

• Small businesses in Alabama with 50 or fewer employees that hire new full-time workers paid more than $10/hour and meet the net employment increase requirement.
• Owners of qualified pass-through entities (S or K corporations) who can receive the credit pro rata based on their share of the business.

Key Provisions

• Repeals Act 2010-557 (the Reemployment Act of 2010).
• Establishes the Full Employment Act of 2011 to provide an income tax credit for job creation.
• Defines a small business as having 50 or fewer employees on the act's effective date.
• Provides a $1,000 income tax credit for each new job paying more than $10/hour, available in the tax year after the employee completes 12 months of consecutive employment.
• Requires a net increase in total full-time Alabama employees at the end of each tax year that is at least equal to the number of new hires for which credits are claimed, plus the number of employees for whom credits were claimed in prior years.
• Credit is applied against Alabama income tax and is nonrefundable and nontransferable; allows pro rata credit to owners of pass-through entities (S or K).
• Effective for tax years beginning on or after January 1, 2011.

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

Subjects

Business and Commerce