SB402 Alabama 2011 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Co-Sponsor

Mark Slade Blackwell

Session

Regular Session 2011

Title

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for banks creating certain jobs, under certain conditions, Full Employment Act, Secs. 40-18-270, 40-18-271, 40-18-272 repealed; Act 2010-557, 2010 Reg.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 repealed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

SB402 repeals the 2010 Reemployment Act and creates a bank-specific tax credit of $1,000 for each new job paying over $10/hour to promote Alabama job growth.

What This Bill Does

It repeals the Reemployment Act of 2010, which gave a deduction for employers who hire unemployed people. It then establishes a new Full Employment Act of 2011 that provides banks with a $1,000 income tax credit for each new job that pays more than $10 per hour. The credit becomes available in the tax year after the employee completes 12 months of employment, and banks must show a net increase in Alabama full-time employees to qualify, with the increase covering the current year's new hires plus prior-year credits. The credit is applied to the Alabama corporate income tax, is non-refundable and non-transferable, and can be allocated pro rata to owners of pass-through entities (S or K). The act takes effect for tax years beginning on or after January 1, 2011.

Who It Affects

• Banks operating in Alabama that create new qualifying jobs (paying more than $10/hour) and meet the net employment increase test.
• Owners of qualified employers taxed under Subchapter S or K of the Internal Revenue Code, who can receive a pro rata share of the credit.

Key Provisions

• Repeals Act 2010-557 (the Reemployment Act of 2010).
• Establishes a bank income tax credit of $1,000 for each new job paying more than $10/hour, with credit available in the tax year after 12 months of consecutive employment.
• Requires a net increase in Alabama full-time employees at year-end to qualify, with the increase equal to the current year's new hires plus one for each prior-year credit recipient.
• Credit is against the Alabama corporate income tax (Chapter 18, Title 40), not refundable or transferable, and allocable pro rata to owners of S- or K-taxed entities.
• Effective for tax years beginning on or after January 1, 2011; repeals conflicting laws; severability clause included.

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