HB61 Alabama 2023 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

Regular Session 2023

Title

Relating to income tax; to define certain terms; to provide for a tax credit to a recruited worker or remote worker who moves to certain counties in Alabama.

Summary

HB61 would create a state income tax credit for recruited and remote workers who move to certain counties in Alabama.

What This Bill Does

It sets up eligibility rules and credit amounts for recruited workers and remote workers who relocate to Alabama counties, including opportunities in Opportunity Zones. Credits can be claimed for up to three tax years, with tier-based amounts ($30,000, $20,000, or $10,000) or $5,000 for Opportunity Zones, and credits may stack with other applicable credits. The total credits across all taxpayers are capped at $2 million per year, credits are non-transferable, and rules may be created by the Department of Revenue; first-time claimants during 2023–2027 may claim for two consecutive years, and no one can claim credits for more than three tax years.

Who It Affects

• Recruited workers who move to Alabama counties and meet residency and occupation requirements (e.g., law enforcement officer, nurse, or teacher).
• Remote workers who move to Alabama counties, work off-site, earn at least $55,000 per year, and meet residency requirements.

Key Provisions

• Defines affected counties by population: Tier 1 (<25,000 residents), Tier 2 (25,000–<50,000), Tier 3 (50,000–<100,000), and identifies Opportunity Zones.
• Specifies recruited-worker criteria: must be in law enforcement, nursing, or teaching; must have lived outside Alabama for the entire previous calendar year; must have resided in an affected county at least six months in the year the credit is claimed.
• Specifies remote-worker criteria: must have lived outside Alabama for the entire previous calendar year; must perform duties off-site or outside employer’s workspace; must have resided in an affected county at least six months; must have taxable income of at least $55,000.
• Credit amounts: $30,000 per year for Tier 1 counties; $20,000 for Tier 2; $10,000 for Tier 3; $5,000 for those in an Opportunity Zone; credits may be claimed for up to three tax years and may be stacked with other credits where allowed.
• Credit limits and rules: credits are not transferable; annual statewide cap of $2,000,000; each eligible individual can claim credits for up to three tax years; first claimants during 2023–2027 may claim for two consecutive tax years.
• Administration: Department of Revenue may adopt rules to implement and administer the credit.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Establish state income tax credit for recruited workers and remote workers.