SB356 Alabama 2018 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2018

Title

Taxation, businessess, income tax credit to a business that loses an employee to another business receiving any economic tax incentive from state government

Summary

SB 356 would create a $2,000 income tax credit for Alabama businesses for each employee who leaves to work for another Alabama business that currently receives any state economic tax incentive.

What This Bill Does

Starting in 2019, the bill would allow a $2,000 tax credit for each employee who voluntarily leaves to work for another Alabama business that is a recipient of any state economic incentive on that employee’s hire date. The credit is nonrefundable and cannot reduce the taxpayer’s liability below zero. The Alabama Department of Labor would maintain an online database with each employee’s name, hire date, and leave date, and employers must update this information when hiring and when employees leave; the database must be operational by the end of 2018. The term 'economic incentive' covers various government-provided benefits intended to promote economic development.

Who It Affects

• Alabama businesses that lose employees to other Alabama businesses that receive any state economic incentive; these employers could claim a $2,000 credit for each departing employee.
• Alabama businesses that are recipients of state economic incentives; their status helps determine eligibility for the credit when their employees move to another incentive-recipient business (the credit is claimed by the leaving employer, not the receiving one).
• The Alabama Department of Labor, which would oversee the database and related rules to implement the program.

Key Provisions

• For tax years beginning January 1, 2019, an income tax credit of $2,000 is allowed to an Alabama business for each employee who voluntarily leaves to work for another Alabama business that is a recipient of any state economic incentive on the employee's hire date.
• The credit is nonrefundable and may not reduce the tax liability below zero.
• The Alabama Department of Labor must create and maintain an online database recording each employee's full name, hire date, and leave date; employers must update the database when hiring and when employees leave; the database must be operational by December 31, 2018.
• The Department may promulgate rules necessary to implement the act.
• The act becomes effective immediately upon passage and approval by the Governor (or as otherwise enacted).

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