HB365 Alabama 2013 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2013

Title

Taxation, tax credit for taxpayer who employs certain students enrolled at least two years or a graduate of an accredited school of engineering

Summary

Alabama HB365 would create an 'Alabama Engineers Internship Program' tax credit for businesses that hire engineering students or graduates and keep them for 3 to 12 months.

What This Bill Does

The bill establishes a 50% income tax credit for employers when they hire eligible engineering students (enrolled at least two years) or graduates of an accredited Alabama engineering school for 3–12 months. The credit is claimed in the year the employment ends and the following year, and is capped at 50% of the business's tax liability for that year (after other credits) with any unused amount carried forward up to five years. The credit is not available if the worker is a spouse, dependent, adult child with spouse, parent, spouse's parent, or sibling with their spouse of the employer or the person hiring the employee.

Who It Affects

• Alabama-based businesses that hire eligible engineering students or graduates (enrolled at least two years or graduates of an accredited in-state engineering school) and retain them for 3–12 months can qualify for the 50% credit.
• Relatives of the employer or hiring person (spouse, dependent, adult child and spouse, parent, spouse’s parent, or sibling and spouse) are not eligible to receive the credit if they are the worker or graduate.

Key Provisions

• Creates the Alabama Engineers Internship Program to provide an income tax credit for employers hiring eligible engineering students or graduates.
• Credit amount equals 50% of the costs of employing each eligible student/graduate, for each year the student/graduate is employed and retained for 3–12 months.
• Credit is claimed in the year the employment period ends and in the following year.
• Eligibility requires the student to be enrolled for at least two years or be a graduate of an accredited Alabama engineering school and the employer to retain them for at least 3 months and up to 12 months.
• Excludes credits if the worker/graduate is a spouse, dependent, an adult child and their spouse, a parent, a spouse’s parent, or a sibling and their spouse of the taxpayer or the hiring person.
• Credit cannot exceed 50% of the taxpayer's tax liability for the year after credits, applies to cumulative credits including carryforwards, and unused credits may be carried forward up to five years.
• Effective January 1, 2014 for the 2013 taxable year and subsequent years; the act also states it becomes effective immediately after passage and governor 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

Taxation