HB116 By Representative McClammy RFD Ways and Means Education Rd 1 03-MAR-15

SYNOPSIS: Under existing law, an income tax credit is not provided to a taxpayer for hiring a student enrolled in a public high school during school breaks, after school, or on weekends.

This bill would provide an income tax credit for hiring students during school breaks, after school, or on weekends whose place of residence is within 30 miles of the United States Highway 80 corridor that lies within the State of Alabama and who is enrolled in a public high school.

A BILL TO BE ENTITLED AN ACT

To provide an income tax credit for hiring students during school breaks, after school, or on weekends whose place of residence is within 30 miles of the United States Highway 80 corridor that lies within the State of Alabama and who is enrolled in a public high school.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. A taxpayer who employs a student to work during school breaks, after school, or on weekends whose place of residence is within 30 miles of the United States Highway 80 corridor that lies within the State of Alabama who is enrolled in a public high school and retains the student as an employee for at least nine months may claim an income tax credit for hiring the student. The income tax credit shall be equal to the wages paid to the student worker during the taxable year up to a maximum of two thousand five hundred dollars ($2,500) for each student employed and retained by the taxpayer each year. The taxpayer may claim the income tax credit with respect to a student worker in the year in which the nine-month period ends and the following year.

Section 2. (a) The credit allowed pursuant to Section 1 shall not exceed 50 percent of the amount of the tax imposed for the taxable year reduced by the sum of all credits allowable, except payments of tax made by or on behalf of the taxpayer. This limitation shall apply to the cumulative amount of the credit, including carry forwards, claimed by the taxpayer under this act for the taxable year. Any unused portion of the credit may be carried forward for the succeeding five years.

Section 3. The income tax credit pursuant to this act shall be effective for January 1, 2016, for the 2016 taxable year and subsequent taxable years.

Section 4. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Taxation

Counties

Black Belt

Tax Credits

Income Tax

Employment

Students