HB160 - Alabama Job Creation and Retention Act of 2012

• Allows Alabama companies undertaking qualifying projects to retain a percentage of state income taxes withheld from eligible employees as withholding incentives.

• For new or expansion projects: companies can retain 1-90% of withheld state income taxes depending on employee count and geographic location, with higher percentages for larger employers.

• For retention projects: companies can retain 1-75% of withheld state income taxes, with minimum capital investment of $2 million (or $500,000 in favored geographic areas) and must maintain 80% of existing employees for at least 5 years (67% in favored areas).

• Requires companies to enter into qualifying project agreements with the state; the ADO Director and Director of Finance recommend approval to the Governor, whose decision is sole discretion; eligible employees receive 100% tax credit for withheld amounts retained by approved companies.

• Incentive period cannot exceed 20 years after project placement in service; aggregate withholding incentives cannot exceed 100% of project capital costs; requires State Industrial Development Authority approval for all retention projects.