HB512 Alabama 2014 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2014

Title

Income tax, tax credit for hiring certain persons under age 19 during school breaks, after school, or on weekends

Summary

Alabama would create an income tax credit for employers who hire student workers under 19 during school breaks, after school, or on weekends in designated zones, starting in 2015.

What This Bill Does

It allows a tax credit equal to the wages paid to each qualifying student worker, up to $2,500 per student per year, for those under 19 who are enrolled in school and work during breaks, after school, or weekends, including summer or holidays, and who are retained for at least nine months. The total credit for a taxpayer cannot exceed 50% of the taxpayer's tax liability for the year after subtracting other credits and payments; any unused portion can be carried forward for five years. The credit is available to businesses and employees in specific zones: 8 A Business, Empowerment Zone, HUB Zones, Renewal Community, Tax Incremental Financial Zones, The Enterprise Zone, and I-65 Corridor. The credit would apply starting with the 2015 tax year and continue for subsequent years.

Who It Affects

• Employers/taxpayers operating in the specified zones who hire qualifying student workers under 19.
• Student workers under 19 who are enrolled in school and work during school breaks, after school, or on weekends (including summer or holidays) and are retained for at least nine months.

Key Provisions

• Creates an income tax credit for hiring student workers under 19 who are in school and work during breaks, after school, or on weekends, with retention of at least nine months.
• Credit equals wages paid to the student during the taxable year, up to a maximum of $2,500 per student worker per year, claimed in the year the nine-month period ends and the following year.
• Credit cannot exceed 50% of the taxpayer's tax liability for the year after other credits and payments; unused credit can be carried forward for up to five years.
• Applicable to employers in designated zones: 8 A Business, Empowerment Zone, HUB Zones, Renewal Community, Tax Incremental Financial Zones, Enterprise Zone, and I-65 Corridor.
• Effective for the 2015 tax year and onward; act becomes effective immediately after passage.

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