AL HB163

Creates the "Back to Work Tax Credit of 2010" providing income tax credits to employers who hire individuals currently receiving Alabama unemployment benefits for at least three consecutive weeks.

Credit amounts are tiered by wage rate: $500 for wages $10.55-$14.99/hour, $1,000 for wages $15.00-$19.99/hour, and $1,500 for wages $20.00 or higher.

Qualified employees must be newly hired full-time workers employed for at least six consecutive months at minimum 32 hours per week, with employers maintaining current unemployment tax filings.

Employers must receive certification from the Alabama Department of Industrial Relations and the credit becomes claimable in the tax year when the employee completes six months of employment.

Credits are limited to the net increase in full-time employees from a December 31, 2009 baseline, are non-refundable and non-transferable, and apply only to hires made before July 1, 2011.