AL HB90

Establishes the "Targeted Job Creation Tax Credit" providing an Alabama income tax credit of $500 per year for employers creating new jobs in the 25 counties with the highest annual unemployment rates.

Credit applies for the tax year in which a new job is created plus two additional years, provided the job remains in place and the employer maintains a net increase in full-time Alabama employees.

Employers must demonstrate a net employee increase equal to the number of newly-hired employees for whom credit is sought in the current year, plus one additional employee for each employee credited in prior years.

Credit applies against state income tax under Chapter 18, Title 40 of Alabama Code, and is non-refundable and non-transferable; owners of S-corps and K-corps receive pro rata credit.

Effective for tax years beginning January 1, 2010, with qualifying counties identified annually by the Department of Industrial Relations based on the preceding year's unemployment rates.