HB 83

Relating to veterans; to amend Sections 40-18-320, 40-18-321, as last amended by Act 2016-188, 2016 Regular Session, 40-18-322, and 40-18-324, of the Code of Alabama 1975, and to add Sections 40-18-320.1 and 40-18-325 to the Code of Alabama 1975; to rename the Heroes for Hire Tax Credit Act of 2012 as the Veterans Employment Act; to allow certain small businesses to qualify for an income tax or financial institution excise tax credit for hiring an unemployed veteran regardless of when the veteran was discharged from active service; and to provide for the sunset of the article

Section 1

Section 40-18-320 of the Code of Alabama 1975, is amended to read as follows: "§40-18-320. "This article shall be known and may be cited as the "Heroes for Hire" Tax Credit Act of 2012 Veterans Employment Act.

Section 2

Section 40-18-320.1 is added to the Code of Alabama 1975, to read as follows: As used in this article, the following terms have the following meanings: "40-18-320.1 HB83 (1) COMBAT VETERAN. A member of the Armed Forces of the United States who served in a United States Department of Defense designated combat zones and was a resident of the State of Alabama at the time of his or her service and received an honorable general discharge from active, federal military service preceding the date of hire. (2) RECENTLY DEPLOYED UNEMPLOYED VETERAN. An individual who meets the criteria for an unemployed veteran except that he or she must have received an honorable or general discharge from active, federal military service within the two-year period preceding the date of hire. (3) UNEMPLOYED VETERAN. An individual who is all of the following: a. Was a resident of Alabama at the time of entry into military service or was mobilized to active, federal military service while a member of the Alabama National Guard or other reserve unit located in Alabama, regardless of the resident's home of record. b. Received an honorable or general discharge from active, federal military service preceding the date of hire. c. Has certification by the Department of Labor at the time of hire of either of the following: 1. Collecting or being eligible to collect unemployment benefits; or HB83 2. Having exhausted his or her unemployment benefits.

Section 3

Sections 40-18-321, as last amended by Act 2016-188, 2016 Regular Session, 40-18-322, and 40-18-324, Code of Alabama 1975, are amended to read as follows: §40-18-321. "In addition to the tax credit allowed for in the Full Employment Act of 2011, codified as Sections 40-18-290 through 40-18-293, or the Alabama Small Business and Agribusiness Jobs Act, an a one time additional one thousand dollar ($1,000) tax credit for job creation is available if to a business that meets the requirements of for a tax credit under Section 40-18-290 through 40-18-293 or Sections 40-18-391 and 40-18-392, are met along with the following definition: for each unemployed or combat veteran hired for a full-time position paying at least fourteen dollars ($14) per hour, the majority of the duties of which are at a business location within Alabama. The additional credit shall only be available in the tax year during which the employee has completed 12 months of consecutive employment. "RECENTLY DEPLOYED UNEMPLOYED VETERAN. An individual who is all of the following: "(1) Was a resident of Alabama at the time of entry into military service or was mobilized to active, federal military service while a member of the Alabama National Guard HB83 or other reserve unit located in Alabama, regardless of the resident's home of record. "(2) Received an honorable or general discharge from active, federal military service within the two-year period preceding the date of hire. "(3) Has certification by the Department of Labor at the time of hire of either of the following: "a. Collecting or being eligible to collect unemployment benefits. "b. Having exhausted his or her unemployment benefits. §40-18-322. "For all tax years beginning on or after January 1, 2012 2018, a qualified employer subject to the requirements of this article and Section Sections 40-18-290 through 40-18-293, shall be eligible for an additional nonrefundable credit against the income tax liability imposed or the state portion of the financial institution excise tax owed in an amount equal to $1,000 one thousand dollars ($1,000) for each new full-time recently deployed unemployed or combat veteran hired after the passage of this article this act for a full-time position paying at least fourteen dollars ($14) per hour, the majority of the duties of which are at a business location within Alabama. The additional credit shall only be available HB83 in the tax year during which the employee has completed 12 months of consecutive employment. §40-18-324. "The Department of Labor, in coordination with the Department of Revenue, the Department of Economic and Community Affairs, and the Department of Veterans' Affairs shall: "(1) Promote awareness of the recently deployed unemployed veteran tax credit authorized in this article to employers and eligible veterans. "(2) Establish procedures for prequalifying an individual as a an recently deployed unemployed veteran and for providing notice to the Department of Labor when a new full-time employee is hired. "(3) Establish procedures for certifying a qualified employer's compliance, or in the case of a credit under subsection (b) of Section 40-18-323, a recently deployed unemployed veteran's compliance, with the eligibility and expense verification requirements to claim the credit authorized under this section. "(4) Adopt measurable goals, outcomes, and an audit strategy to assess the utilization and performance of the credits authorized in this article. "(5) On or before January 15, 2014, submit a written report on its assessment of the credits to the Alabama House HB83 Committees on Military and Veterans Affairs, Commerce and Small Business and Ways and Means-Education, and to the Alabama Senate Committees on Veterans and Military Affairs, Finance and Taxation-ETF, and Job Creation and Economic Development. "(6) Engage in efforts to promote the hiring of recently deployed unemployed veterans through hiring practices of the State of Alabama."

Section 4

Section 40-18-325 is added to the Code of Alabama 1975, to read as follows: "§ 40-18-325. The tax credits authorized by this article shall not be available after December 31, 2023, unless extended by an act of the Legislature.

Section 5

The tax credits authorized by this act shall not be claimed by a qualified employer until the status of the unemployed veteran is verified by the Alabama Department of Labor.

Section 6

The Department of Revenue shall, on an annual basis, provide the Legislative Services Agency with the total amount of credits claimed under the Veterans Employment Act in accordance with Act 2015-237.

Section 7

This act shall become effective January 1, 2018, following its passage and approval by the Governor, or its otherwise becoming law. HB83 Speaker of the House of Representatives President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 16-JAN-18, as amended. Jeff Woodard Clerk Senate 15-FEB-18 Amended and Passed Passed, as amended House 01-MAR-18 by Conference Com- mittee Report Passed, as amended Senate 06-MAR-18 by Conference Com- mittee Report