SB 50 - Jobs Tax Credit Summary

• Establishes annual jobs tax credits for Alabama companies operating manufacturing, tourism, processing, warehousing, distribution, research and development, corporate offices, and other qualifying facilities that create new full-time jobs.

• Provides tiered tax credits ranging from $1,500 to $8,000 per job based on county economic development designation (distressed, least developed, underdeveloped, moderately developed, or developed).

• Credits are available for 5 years beginning in year two after job creation and require companies to maintain a minimum of 10 new full-time jobs; small employers with 99 or fewer employees can qualify with 2 new jobs if wages meet threshold requirements.

• Allows infrastructure project credits of up to 50 percent of expenses (maximum $10,000 annually) for construction or improvement of water, sewer, and road projects that benefit the public.

• Authorizes additional credits for employers hiring individuals from disadvantaged populations including welfare recipients, disabled veterans, disabled persons, felony offenders, and post-September 11 veterans, with credits based on percentage of wages paid (20 percent to 10 percent over 36 months).