AL HB117

Allows taxpayers in Class 3 municipalities organized under Act 618 (1973) to claim an income tax credit for hiring students under age 19 who work during school breaks, after school, weekends, or summers while remaining enrolled in school.

Credits equal wages paid to each student worker up to a maximum of $2,500 per student per year, claimable in the year the nine-month employment period ends and the following year.

Credit limited to 50 percent of annual tax liability reduced by other allowable credits, with unused portions carrying forward for five years.

Available only for businesses in designated economic zones: 8A Businesses, Empowerment Zones, HUB Zones, I-65 Corridor, Renewal Communities, Tax Incremental Financial Zones, and Enterprise Zones.

Effective January 1, 2012, for the 2012 taxable year and subsequent years.