HB259 Alabama 2025 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

2025 Regular Session

Title

Establish income tax credit for recruited or remote workers

Summary

HB259 would create a state income tax credit for recruited and remote workers who move to certain Alabama counties to encourage job growth.

What This Bill Does

The bill defines three county tiers by population (Tier 1: <25,000; Tier 2: 25,000–<50,000; Tier 3: 50,000–<100,000) and includes Opportunity Zones. It provides tax credits for recruited workers and remote workers who move to these counties, with amounts of $30,000 (Tier 1), $20,000 (Tier 2), $10,000 (Tier 3), and $5,000 for Opportunity Zones, each year for up to three years. Credits are nonrefundable, can stack with Opportunity Zone credits, cannot reduce tax liability below zero, and can be carried forward up to five years; the program has an annual cap of $2,000,000. The program starts in 2026 and runs through 2030 unless extended, with rules for first-time claimants to cover two consecutive years and a total of up to three years per individual.

Who It Affects

• Recruited workers (law enforcement officers, nurses, and teachers) who move to an Alabama county designated as Tier 1, Tier 2, or Tier 3 or an Opportunity Zone; they could qualify for up to $30k, $20k, or $10k per year for up to three years, plus up to $5k if they move to an Opportunity Zone, subject to tax liability and program limits.
• Remote workers who move to an Alabama county designated as Tier 1, Tier 2, Tier 3, or an Opportunity Zone; they must earn at least $55,000 annually and meet residency and prior-year requirements to claim the same tiered credits for up to three years, subject to the same liability and program limits.

Key Provisions

• Creates an Alabama individual income tax credit for recruited workers and remote workers who move to certain counties or Opportunity Zones in the state.
• Defines Tier 1, Tier 2, Tier 3 counties by population and defines Opportunity Zones for credit purposes.
• Sets credit amounts: $30,000 (Tier 1), $20,000 (Tier 2), $10,000 (Tier 3) per year for recruited or remote workers, plus $5,000 for those in Opportunity Zones; allows stacking with Opportunity Zone credits.
• Credits are nonrefundable, not transferable, cannot reduce tax liability below zero, and can be carried forward up to five years; total annual program cap is $2,000,000.
• Eligibility requires residency in an affected county for at least six months in the year the credit is claimed; recruited workers must be in specified occupations and meet prior-year residency rules; remote workers must work off-site and have at least $55,000 in taxable income and prior-year non-Alabama residency.
• Credits may be claimed for up to three tax years per worker; first claimable for 2026 tax year and continuing through 2030 unless extended by law; a claimant may use two consecutive years if eligible, but not more than three years in total.
• The Alabama 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

Taxation & Revenue