SB523 Summary

• Establishes an Alabama income tax deduction for employers who hire persons currently receiving unemployment compensation or whose benefits have expired, with unemployment status certified by local employment agencies.

• Deduction equals a percentage of gross wages paid based on hourly wage rates: 50% for $14+/hour, 40% for $12-$14/hour, 35% for $10-$12/hour, with no deduction for jobs paying less than $10/hour.

• Deduction applies only to full-time jobs (37.5+ hours), may be claimed in only one tax year, and requires 12 consecutive months of continuous employment before claiming.

• Deduction is non-refundable and non-transferable but available on pro rata basis to owners of S-corporation and partnership employers.

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