House Bill 517 Alabama 2026 Session

Summary

Primary Sponsor

James LomaxRepresentative

Republican

Session

2026 Regular Session

Title

Talent Readiness and Industry Needs (TRAIN) Act, qualified employees authorized to teach a career and technical education program, tax credits provided to employers that loan qualified employees, workforce teaching certificate established

Summary

Alabama HB517 would create the TRAIN Act to let private employers loan qualified employees to teach career and technical education in eligible schools, supported by a new tax credit and a streamlined workforce teaching certificate.

What This Bill Does

It authorizes private-sector employers to partner with eligible educational institutions to provide CTE instruction to students. It creates a TRAIN Act tax credit that employers can apply against certain Alabama taxes for salary paid to qualified employees serving as instructors, with caps and carryforwards. It establishes a Workforce Teaching Certificate and an online training program to streamline certifying qualified employees to teach designated CTE programs. It also sets program oversight, reporting requirements, and termination/recapture rules.

Who It Affects

• Employers: may claim a TRAIN Act tax credit against income taxes, the financial institution excise tax, and state license taxes for salary paid to qualified employees serving as instructors, subject to MOUs, caps, and compliance rules.
• Eligible educational institutions and their students: will host qualified employees as instructors, provide classroom space and materials, and implement the designated CTE programs and certificate process to allow industry professionals to teach in schools.

Key Provisions

• Establishes the Talent Readiness and Industry Needs (TRAIN) Act to authorize partnerships between private businesses and eligible educational institutions to provide CTE instruction.
• Defines key terms used in the act, including Designated CTE Program, Eligible Educational Institution, Employer, Public High School, Qualified Employee, Salary, Teaching Assignment, and Workforce Teaching Certificate.
• Creates a TRAIN Act tax credit that can offset income tax, the financial institution excise tax, or state license taxes, equal to the portion of the qualified employee's salary paid for the teaching assignment, with MOUs required and subject to per-employer and statewide caps.
• Imposes a per-employer credit cap of $250,000 and a statewide cap of $10 million annually; credits begin for the 2027 tax year; credits are non-transferable and have a five-year carryforward with recapture rules for noncompliance.
• Requires MOUs between employers and eligible educational institutions detailing the employee, designated CTE program, assignment duration and hours, salary continuation, background checks, verification methods, insurance, liability, and compliance.
• Creates a Workforce Teaching Certificate to authorize qualified employees to teach in designated CTE programs, including an online, targeted training program and safeguards such as background checks and certificate renewal/termination rules.
• Provides that the Department of Revenue administers the credits, issues credit reservation certificates, tracks reservations, and reports annually on usage, participants, geography, and outcomes; an evaluation report is due by July 1, 2031.
• Requires designated CTE programs to be approved annually by the Alabama Workforce Board, with program designations affecting eligibility for participation.
• Specifies effective date and sunset conditions: the act becomes effective October 1, 2026; credits become available for 2027; credits and processes may be extended or modified by future legislation, and approvals prior to December 31, 2031 affect availability.

AI-generated summary using openai/gpt-5-nano on Feb 26, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education; Taxation & Revenue