SB 356

Sponsor
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
Description

Currently, income tax credits are given to certain businesses to offset income tax liability

This bill provides for an income tax credit to businesses that lose employees to a business currently receiving any economic tax incentive from state government

Relating to tax credits; to provide an income tax credit to Alabama businesses that lose an employee to another Alabama business currently receiving any economic tax incentive from state government.

Subjects
Taxation
View Original PDF: SB 356 - Introduced - PDF

Currently, income tax credits are given to certain businesses to offset income tax liability

This bill provides for an income tax credit to businesses that lose employees to a business currently receiving any economic tax incentive from state government

Relating to tax credits; to provide an income tax credit to Alabama businesses that lose an employee to another Alabama business currently receiving any economic tax incentive from state government.

Section 1

For the purpose of this act, the following words and phrases shall have the following meanings: (1) ALABAMA BUSINESS. A business organization duly formed, organized, or qualified to do business in the state, with its headquarters or principal place of business in the state. (2) DEPARTMENT. The Alabama Department of Labor. (3) ECONOMIC TAX INCENTIVE. Any tax credits, deductions, exemptions, abatements, preferential rates, or rebates given as an inducement provided by the government where the government promises to forgo tax revenues to which it is otherwise entitled or to provide some other benefit to an individual or entity that promises to take specific action that contributes to economic development.

Section 2

(a) For tax years beginning on or after January 1, 2019, an income tax credit equal to two thousand dollars ($2,000) is hereby allowed to an Alabama business for each employee that voluntarily leaves to work for another Alabama business who is the recipient of any economic tax incentive from state government on the hire date of that employee. (b) This tax credit may not be allowed to decrease the tax liability of a taxpayer to less than zero in any tax year. The credit shall be nonrefundable and nontransferable.

Section 3

(a) The department shall create and maintain an online database for the purpose of recording the following relating to each employee of an Alabama business: (1) The full name of the employee; (2) The hire date of the employee; and (3) The leave date of the employee. (b) The department shall ensure that the database required in this section is designed so that an Alabama business may access the database and regularly update the required information. An Alabama business shall update the database when an employee is hired and when an employee leaves the business. (c) The department shall have the database operational no later than December 31, 2018.

Section 4

The department may promulgate rules necessary for implementation of this act.

Section 5

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

No articles found.
Action Date Chamber Action
March 8, 2018SFinance and Taxation Education first Amendment Offered
March 8, 2018SPending third reading on day 19 Favorable from Finance and Taxation Education with 1 amendment
March 8, 2018SRead for the second time and placed on the calendar 1 amendment
March 1, 2018SRead for the first time and referred to the Senate committee on Finance and Taxation Education