HB116 Alabama 2015 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2015

Title

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

Summary

HB116 creates an income tax credit for employers who hire public high school students living within 30 miles of Alabama's US Highway 80 corridor and keep them for at least nine months.

What This Bill Does

If enacted, eligible employers can claim a tax credit equal to the student’s wages paid during the taxable year, up to $2,500 per student. The credit is limited to 50% of the taxpayer’s net tax liability for the year (after other credits) and any unused portion can be carried forward up to five years. The credit is claimed in the year the nine‑month period ends and the following year, and it applies to wages earned while the student works during school breaks, after school, or on weekends, for students residing near the Highway 80 corridor. The measure would take effect for the 2016 tax year and later.

Who It Affects

• Employers that pay Alabama income tax and hire eligible public high school students who live within 30 miles of the Highway 80 corridor, and who retain them for at least nine months.
• Public high school students living within 30 miles of the Highway 80 corridor who work part-time during breaks, after school, or on weekends (as their wages generate the credit for their employer).

Key Provisions

• Eligible employment: student must be a public high school student living within 30 miles of the US Highway 80 corridor in Alabama and retained for at least nine months.
• Credit amount: up to $2,500 per student per tax year, equal to wages paid to the student during the year.
• Claim timing: credit may be claimed in the year the nine-month period ends and the following year.
• Credit limit and carryover: credit cannot exceed 50% of the taxpayer’s net tax liability for the year; unused credits may be carried forward for five years.
• Effective date: applies to 2016 tax year and later; becomes effective upon passage/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