HB326 Alabama 2013 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2013

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

HB326 would create an income tax credit for Class 3 municipalities (Act 618, 1973) to encourage hiring student workers under 19 during school breaks, after school, or on weekends, with limits on the number of workers and the credit amount.

What This Bill Does

If passed, the bill would allow an income tax credit for employers in Class 3 municipalities to hire student workers under 19 who are in school and work during breaks, after school, or on weekends. The credit would equal the student’s wages for the year, up to $2,500 per student, and would be claimed in the year the nine-month work period ends and the following year. The credit is limited to 50% of the taxpayer’s tax for the year (after other credits) and can be carried forward for five years; it also caps the total number of qualifying student workers at 50 in year 1, 75 in year 2, and 100 in year 3 and thereafter. Eligible areas include several zones such as Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Incremental Financing Zones, and Enterprise Zone.

Who It Affects

• Businesses and other taxpayers operating in Class 3 municipalities (Act 618 zones) that hire qualifying student workers under 19; they could receive a tax credit up to $2,500 per student, subject to annual and cumulative limits.
• Student workers under 19 who are enrolled in school and are employed for at least nine months; their wages would qualify their employers for the tax credit.

Key Provisions

• Creates an income tax credit for hiring student workers under 19 who are enrolled in school and work during school breaks, after school, or on weekends in Class 3 municipalities.
• Credit equals wages paid to the student during the taxable year, up to $2,500 per student, and is claimed in the year the nine-month period ends and the following year.
• Credit cannot exceed 50% of the taxpayer's tax for the year (after subtracting other credits) and unused credits can be carried forward for five years.
• Annual cap on the number of student workers claimed: 50 in the first year, 75 in the second year, and 100 in the third year and thereafter.
• Eligible areas include 8 A Business, Empowerment Zone, HUB Zones, I-65 Corridor, Renewal Community, Tax Incremental Financing Zones, and the Enterprise Zone.
• Effective date: credits apply beginning January 1, 2014 for 2014 taxable year and beyond; the act becomes effective immediately after passage and approval.

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