HB118 Alabama 2024 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

Regular Session 2024

Title

Establish income tax credit to recruited or remote workers

Summary

HB118 would create a nonrefundable state income tax credit for recruited and remote workers who move to Alabama counties, with amounts based on county tier or opportunity zones and multi-year usage limits.

What This Bill Does

The bill defines recruited workers (in certain occupations) and remote workers, and designates Alabama counties into Tier 1, Tier 2, Tier 3, or Opportunity Zones. Eligible workers who relocate to an affected county (and meet residency requirements) could claim a tax credit of up to $30,000 (Tier 1), $20,000 (Tier 2), $10,000 (Tier 3), or $5,000 (Opportunity Zone) per tax year, for up to three tax years. The credit can be claimed in addition to other credits, but it is nonrefundable, non-transferable, and can be carried forward up to five years, with a statewide annual cap of $2,000,000. The act also sets residency and income conditions for recruited and remote workers and specifies that the program applies for tax years 2024 through 2028, with the act itself becoming effective June 1, 2024.

Who It Affects

• Recruited workers (such as law enforcement officers, nurses, and teachers) who move to an affected Alabama county, meet the residency requirements, and previously resided outside Alabama.
• Remote workers who relocate to an affected Alabama county, perform their work off-site, have at least $55,000 in taxable income, and meet the residency requirements in the county.

Key Provisions

• Defines affected counties by population: Tier 1 (<25,000), Tier 2 (25,000–<50,000), Tier 3 (50,000–<100,000), plus an Opportunity Zone.
• Defines recruited worker and remote worker eligibility criteria, including residency in an affected county for at least six months in the tax year and, for recruited workers, occupation requirements and prior year residency outside Alabama; remote workers must have $55,000+ income and work off-site.
• Credit amounts: $30,000 (Tier 1), $20,000 (Tier 2), $10,000 (Tier 3) per year; $5,000 for Opportunity Zones; credits available for up to three tax years and may be claimed in addition to other eligible credits.
• Not refundable or transferable; any credit exceeding tax liability can only reduce tax to zero, with unused credit carrying forward up to five years.
• Annual aggregate credit cap of $2,000,000 statewide.
• An individual may claim credits for up to two consecutive tax years in some cases, but not more than three tax years total.
• Department of Revenue may adopt rules to implement and administer the program.
• Effective for tax years 2024–2028; act becomes effective June 1, 2024 (note: internal date references in the bill also mention January 1, 2024 for start of credits).

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

Subjects

Economic Development; Taxation & Revenue