SB405 Summary

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

• Deduction equals 50% of gross wages paid to each qualifying employee and must be claimed in only one tax year after the employee has been continuously employed for 12 months.

• Unemployment status of employees at time of hire must be certified by the local employment agency.

• Deduction is allowed against Chapter 18, Title 40 of the Code of Alabama 1975 and is not refundable or transferable; available on a pro rata basis to S-corporation and partnership owners.

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