SB402 Summary

• Establishes an Alabama income tax credit of $1,000 per new job created by banks, available when employees complete 12 months of consecutive employment and earn more than $10 per hour.

• Banks must demonstrate a net increase in full-time Alabama employees on the last date of each tax year, with the increase equaling at least one additional employee per newly hired employee in the current year plus one for all prior-year credited employees.

• Tax credit is non-refundable and non-transferable, applies against Alabama income tax liability under Chapter 18, Title 40, and is available on a pro rata basis to owners of entities taxed under Internal Revenue Code subchapters S or K.

• Repeals the Reemployment Act of 2010 (Act 2010-557), which previously allowed income tax deductions for employers hiring unemployed persons.

• Becomes effective for tax years beginning on or after January 1, 2011.