HB541 By Representatives McClammy, Melton and Lawrence RFD Ways and Means Education Rd 1 23-APR-15

SYNOPSIS: Under existing law, an income tax credit is not provided to a taxpayer for hiring a student in a public high school who lives within a 20-mile radius of the Selma to Montgomery National Historic Trail during school breaks, after school, or on weekends.

This bill would provide an income tax credit for hiring students enrolled in a public high school who live within a 20-mile radius of the Selma to Montgomery National Historic Trail, which crosses Dallas, Lowndes, and Montgomery County, under the age of 19 during school breaks, after school, or on weekends.

A BILL TO BE ENTITLED AN ACT

To provide an income tax credit for hiring students enrolled in a public high school who live within a 20-mile radius of the Selma to Montgomery National Historic Trail, which crosses Dallas, Lowndes, and Montgomery County, under the age of 19 during school breaks, after school, or on weekends.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This bill may be known and cited as the Selma to Montgomery National Historic Trail Employment Act.

Section 2. A taxpayer who employs a student enrolled in a public high school who lives within a 20-mile radius of the Selma to Montgomery National Historic Trail, which crosses Dallas, Lowndes, and Montgomery County, during school breaks, after school, or on weekends, including during the summer or official holidays, in the state and shall retain the student worker as an employee for at least nine months shall be allowed an income tax credit for hiring the student. The amount of 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 worker employed and retained by the taxpayer each year. The taxpayer shall 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 3. The credit allowed pursuant to Section 2 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 4. 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 5. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Montgomery County

Taxation

Counties

Tax Credits

Income Tax

Employment

Students