AL SB531

Establishes an Alabama income tax deduction for employers who hire persons drawing unemployment compensation or whose benefits have expired, to be claimed only once and only after 12 consecutive months of employment.

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

Requires jobs to be full-time (minimum 37.5 hours per week) to qualify for any deduction, with unemployment status certified by local unemployment agency.

Deduction applies against Alabama income tax under Chapter 18, Title 40, and is available on pro rata basis to owners of S-Corp and K-Corp entities, but is not refundable or transferable.

Effective for tax years 2011 and 2012, with Department of Revenue authorized to adopt implementing rules.