HB541 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

HB541 would create an income tax credit for Alabama employers who hire public high school students under 19 who live within 20 miles of the Selma-to-Montgomery National Historic Trail for work during non-school times.

What This Bill Does

It provides an income tax credit to taxpayers who hire eligible public high school students living near the Selma-to-Montgomery National Historic Trail for work during school breaks, after school, weekends, or holidays. The credit equals the wages paid to the student in the tax year, up to $2,500 per student. Employers must retain the student for at least nine months, and the credit is claimed in the year the nine-month period ends and the following year. The credit cannot exceed 50% of the taxpayer’s tax liability for the year, and any unused amount can be carried forward for five years. The credit becomes effective January 1, 2016 and applies to later tax years.

Who It Affects

• Taxpayers/employers in Alabama who hire eligible public high school students living within 20 miles of the Selma-to-Montgomery National Historic Trail.
• Eligible students: public high school students under age 19 who live within the 20-mile radius of the trail (which crosses Dallas, Lowndes, and Montgomery Counties).

Key Provisions

• Eligibility: Student must be enrolled in a public high school and live within a 20-mile radius of the Selma to Montgomery National Historic Trail (crossing Dallas, Lowndes, and Montgomery Counties) and be under age 19; employment can occur during school breaks, after school, weekends, or during summer/holidays.
• Credit amount: The tax credit equals wages paid to the student during the taxable year, up to $2,500 per student per year.
• Retention requirement: The employer must retain the student for at least nine months.
• Timing to claim: The credit is claimed in the year the nine-month period ends and the following year.
• Limitations: The credit cannot exceed 50% of the taxpayer’s tax liability for the year (after other credits); this limit applies to the total credits claimed for the year, including carryforwards.
• Carryforward: Any unused portion of the credit can be carried forward for up to five years.
• Effective date: The credit is effective January 1, 2016, for the 2016 tax year and subsequent years.

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