HB136 - Back to School Tax Credit

• Establishes an Alabama income tax credit equal to 50% of qualifying costs for educational advancement and training paid by qualified individuals or employers for tax years beginning after December 31, 2009.

• Credit applies against Alabama income tax liability under Chapter 18, Title 40 of the Code of Alabama, 1975, and cannot reduce tax liability below zero or be refunded or transferred.

• Makes credit available on a pro rata basis to owners of qualified employers taxed under Internal Revenue Code sub-chapters S or K.

• Delegates definition of qualifying individuals, qualifying employers, and qualifying costs to workforce development.

• Becomes effective for tax years beginning on or after January 1, 2010.