AL HB206

Allows taxpayers an income tax credit for hiring student workers under age 19 who are enrolled in school or have dropped out, to work during school breaks, after school, weekends, summer, or official holidays in Alabama.

Credit equals wages paid to the student worker during the taxable year, with a maximum of $2,500 per student worker per year.

Taxpayer must retain the student worker as an employee for at least nine months to qualify; the credit may be claimed in the year the nine-month period ends and the following year.

Credit cannot exceed 50 percent of the taxpayer's annual tax liability reduced by all other allowable credits, with unused portions carried forward for up to five years.

Act becomes effective January 1, 2011.