AL HB137

Adds Section 40-18-182 to the Code of Alabama 1975 to create an Alabama Work Opportunity income tax credit equal to 20% of the federal work opportunity credit attributable to employment of Alabama residents.

Credit is available to employers who qualify for the federal income tax work opportunity credit under Internal Revenue Code Section 51 and applies against Alabama Chapter 18 income tax.

Phases in the credit over two adjustment years in equal installments, with each adjustment year beginning January 1 following Alabama Department of Finance certification of at least 3% estimated growth in the Education Trust Fund.

Alabama Department of Finance must certify annually to the Department of Revenue on or before the second legislative day of each regular session whether estimated Education Trust Fund revenue growth will equal or exceed 3% in the subsequent fiscal year.

Becomes effective for tax years beginning on or after January 1, 2011.