SB393 Alabama 2015 Session

Summary

Primary Sponsor

Quinton Ross

Democrat

Session

Regular Session 2015

Title

Taxation, tax credit, employer provided a tax credit for employing an individual released from incarceration

Summary

SB393 would create a nonrefundable income tax credit of $1,000 for Alabama employers who hire an individual released from incarceration who completed correctional education, with limits on duration and years claimed.

What This Bill Does

It establishes an Alabama income tax credit for eligible employers who employ an individual released from incarceration for at least seven months in the taxable year, equal to $1,000 per such individual. The credit cannot reduce a taxpayer's liability below zero, is not refundable or transferable, and is available on a pro rata basis to owners of pass-through entities. Employers must apply each year to receive the credit for the preceding calendar year.

Who It Affects

• Eligible employers in Alabama that hire an individual released from incarceration who participated in a correctional education program and earned a certificate or associate degree.
• Individuals released from incarceration who completed a correctional education program and are employed by an eligible employer.

Key Provisions

• Defines 'individual released from incarceration' as a person convicted of a felony, released from a Department of Corrections facility (to probation, parole, or end of sentence) and who completed a correctional education program through the Alabama Community College System and earned a certificate or associate degree.
• Defines 'eligible employer' as a taxpayer who first employs such an individual on or after the bill's effective date.
• Provides a $1,000 tax credit for each eligible individual employed at least seven months in the taxable year, with credit available for up to four taxable years per individual, against the Alabama income tax (not refundable or transferable; cannot reduce tax liability below zero; pro rata for owners of S or K corporations; annual application required).
• Administration and rules: the Alabama Community College System administers participation standards and eligibility rules; it must consult with the Department of Revenue and Department of Corrections; the Department of Revenue will provide the claim form and handle credits.
• Effective date: the credit applies for the 2016 tax year and each subsequent taxable year; act becomes effective immediately upon passage and 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