HB384 Alabama 2014 Session

Summary

Primary Sponsor

Mac Buttram

Republican

Co-Sponsors

Terri CollinsMike HubbardAlan Baker

Session

Regular Session 2014

Title

Income tax, tax credit for contributions to Postsecondary Education Department for high school students enrolled in Career-Technical Dual Enrollment Program, commencing in 2015

Summary

The bill creates a state income tax credit for donations to fund high school students’ Career-Technical Dual Enrollment programs in Alabama.

What This Bill Does

It allows individual taxpayers and certain businesses to claim a credit equal to 50% of their contributions to the Department of Postsecondary Education for qualifying expenses tied to the Career-Technical Dual Enrollment Program. The credit cannot exceed 50% of the taxpayer’s Alabama income tax liability and is capped at $500,000 per tax year; total credits issued cannot exceed $5,000,000 annually. Donors may direct up to 80% of their contribution to specific programs at a particular Alabama Community College System institution, with the remainder allocated by the department under the act; any unallocated funds may be used in future tax years. The Department of Revenue and the Department of Postsecondary Education will administer the program, set rules, issue receipts, require documentation, and report annually on credits claimed and program expenditures.

Who It Affects

• Taxpayers who make qualifying contributions (individuals, married couples filing jointly, LLCs, corporations, etc.) and may receive a tax credit.
• High school students enrolled in the Career-Technical Dual Enrollment Program and the Alabama Community College System institutions offering those courses, who benefit from the funding for qualifying educational expenses and program administration.

Key Provisions

• Tax credit equal to 50% of qualifying contributions, not more than 50% of the taxpayer's Alabama income tax liability, with a per-year cap of $500,000; total credits limited to $5,000,000 annually.
• Donors may direct up to 80% of their contribution to specific career-technical programs at a single Alabama Community College System institution; remaining funds are allocated by the Department; unspent funds can be used in future tax years.
• Department of Postsecondary Education administers the program, may allocate up to $200,000 per year for administrative costs, and coordinates with workforce partners to align funding with regional needs.
• Department of Revenue adopts rules, requires receipts for claiming the credit, and both departments provide annual reporting on credits claimed and program expenditures; credits may be claimed for tax years starting in 2014-2015 and thereafter.

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

Subjects

Education