HB68 Summary

• Establishes an Alabama income tax deduction for employers that hire persons currently drawing unemployment compensation or whose benefits have expired.

• Deduction equals 50% of the taxable income of each qualified employee hired and retained for 12 consecutive months.

• Deduction may be claimed only once per employee and only after the employee completes 12 months of continuous employment; deduction is not refundable or transferable.

• Unemployment status must be certified by the local employment agency, and deduction applies against Chapter 18, Title 40 taxes under the Code of Alabama 1975.

• Effective for tax years beginning on or after January 1, 2010, with the Department of Revenue authorized to adopt necessary rules and regulations.