HB440 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

HB440 would create an income tax credit for Alabama taxpayers who hire public high school students under 19 living within 20 miles of the Selma to Montgomery National Historic Trail during school breaks, after school, weekends, or holidays.

What This Bill Does

It provides an income tax credit to employers who hire eligible public high school students within the 20-mile radius of the Selma to Montgomery National Historic Trail and retain them for at least nine months. The credit equals the student worker's wages paid during the taxable year, up to a maximum of $2,500 per student per year, and can be claimed in the year the nine-month period ends and the following year. The total credit cannot exceed 50% of the taxpayer's tax liability for the year (after other credits) and any unused portion can be carried forward for up to five years.

Who It Affects

• Taxpayers/employers in Alabama who hire eligible public high school students within 20 miles of the Selma to Montgomery National Historic Trail; they may receive a state income tax credit for wages paid to those students, subject to retention and dollar-cap rules.
• Eligible students: public high school students under age 19 living within the 20-mile radius; they are the potential recipients of employment opportunities during school breaks, after school, weekends, or during summer/official holidays.

Key Provisions

• Eligibility criteria: student must be enrolled in a public high school, under 19, and live within 20 miles of the Selma to Montgomery National Historic Trail; employment can occur during breaks, after school, weekends, or during summer/holidays; employer must retain the student for at least nine months.
• Credit amount: the credit equals the wages paid to the student during the taxable year, up to a maximum of $2,500 per student per year.
• Credit limits and timing: the credit cannot exceed 50% of the taxpayer's tax liability for the year (after other credits); it applies to the cumulative credits including carry-forwards, and any unused portion can be carried forward for five years.
• Effective date: the credit is effective for January 1, 2016, for the 2016 tax year and later; the act becomes law upon 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

Montgomery County