SB109 Alabama 2015 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2015

Title

Taxation, tax credit, employer provided a tax credit for employing an apprentice, definitions, Apprenticeship Tax Credit Act

Summary

SB109 creates a nonrefundable Alabama income tax credit of $1,000 for employers who hire an eligible apprentice for at least seven full months in a taxable year.

What This Bill Does

SB109 would provide an Alabama income tax credit of $1,000 for each eligible apprentice employed for at least seven full months in a taxable year. The credit applies to the tax due under Title 40, Chapter 18, is nonrefundable and cannot reduce tax liability below zero, and cannot be used for the same apprentice for more than four taxable years. It can be claimed on a pro rata basis if the apprentice works only part of the year, and it also applies to owners of S or K subchapter entities on the same basis. Eligibility requires the apprentice to be part of a registered apprenticeship program and for the employer to have an apprenticeship agreement on file with the U.S. Department of Labor; the act also calls for administration by AIDT and coordination with the Alabama Community College System and the Department of Revenue for forms.

Who It Affects

• Employers who hire eligible apprentices and may claim the $1,000 credit per apprentice
• Apprentices and their apprenticeship sponsors/ programs that participate in registered apprenticeship programs
• Owners of pass-through businesses taxed as S or K corporations who may receive the credit pro rata

Key Provisions

• Establishes a $1,000 income tax credit for each eligible apprentice employed at least seven full months in the taxable year
• Credit applies against Alabama income tax under Title 40, Chapter 18; nonrefundable and cannot reduce tax liability below zero; cannot be claimed for the same apprentice for more than four taxable years
• Credit can be claimed on a pro rata basis for partial-year employment and for owners of S or K pass-through entities on the same basis
• Apprentice eligibility requires the apprentice to be at least 16 and part of an eligible apprenticeable occupation as defined by federal rules; apprenticeship agreement must be registered with the U.S. Department of Labor; program must be registered and on-file
• Administration includes AIDT coordinating with the Alabama Community College System; Department of Revenue to provide claim forms; coordinated efforts with Department of Commerce
• Effective for the 2016 tax year and later; act becomes 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