HB260 Summary

• Establishes an Alabama income tax deduction for employers who hire unemployed persons drawing unemployment compensation or whose benefits have expired, known as the "Reemployment Act of 2010."

• Deduction equals 50% of gross wages paid to each qualifying newly hired employee, claimable only once after 12 months of continuous employment and certified by local employment agency.

• Deduction percentages vary by wage rate: 50% for $14+/hour, 40% for $12-$14/hour, 35% for $10-$12/hour, and no deduction for wages below $10/hour or part-time positions under 37.5 hours weekly.

• Deduction applies against Alabama income tax under Chapter 18, Title 40, is non-refundable and non-transferable, but available on pro-rata basis to owners of S-Corp and K-Corp entities.

• Effective for tax years 2011 and 2012; Department of Revenue authorized to adopt necessary rules and regulations for implementation.