HB230 Summary

• Establishes an Alabama income and financial institution excise tax credit of $1,000 per employee for small businesses (50 or fewer employees) that create new jobs paying more than $10 per hour.

• Credit is available in the tax year when an employee completes 12 months of consecutive employment and applies only to employees hired after the act's enactment.

• Employer must demonstrate a net increase in total Alabama full-time employees, with the increase equaling at least one additional employee for each new hire claimed plus one employee for all previously claimed hires.

• Credit applies against Alabama income tax (Chapter 16) or financial institution excise tax (Chapter 18), is non-refundable and non-transferable, and cannot reduce tax liability below zero.

• Repeals Act 2010-557 and becomes effective for tax years beginning January 1, 2011 or later.