HB113 Alabama 2015 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2015

Title

Montgomery Co., income tax, tax credit for hiring certain persons under age 19 during school breaks, after school, or on weekends

Summary

HB113 would create a state income tax credit for employers who hire Montgomery County public high school students under 19 during school breaks, after school, or on weekends, up to $2,500 per student per year with a nine-month retention requirement.

What This Bill Does

If enacted, the bill would let an employer claim an income tax credit for wages paid to eligible student workers. The credit would equal the wages paid to each eligible student, up to a maximum of $2,500 per student per year. Employers must hire a student under 19 enrolled in a Montgomery County public high school and keep them employed for at least nine months, working during breaks, after school, or on weekends (including summer or holidays). The credit cannot exceed 50% of the employer’s tax liability for the year, and unused credits can be carried forward for up to five years; the credit is claimed in the year the nine-month period ends and the following year.

Who It Affects

• Employers in Alabama that hire Montgomery County public high school students under 19 and retain them for at least nine months, who may receive a tax credit up to $2,500 per student per year (subject to the tax liability limit).
• Public high school students in Montgomery County under 19 who work during school breaks, after school, weekends, or holidays while enrolled in a Montgomery County public high school.

Key Provisions

• Eligibility: student must be under 19, enrolled in a Montgomery County public high school, and work during school breaks, after school, or on weekends for at least nine months.
• Credit amount: up to $2,500 of wages paid per eligible student per tax year.
• Claim timing: credit claimed in the year the nine-month period ends and in the following year.
• Limitations: credit cannot exceed 50% of the taxpayer's tax liability for the year; unused credits may be carried forward for up to five years.
• Effective date: applies to January 1, 2016 and later; effective immediately upon 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