SB271 Summary: Alabama Job Creation and Retention Act of 2012

• Creates withholding tax incentive program allowing approved companies undertaking qualifying projects in Alabama to retain 1-90% of state income taxes withheld from eligible employees for new/expansion projects, or 1-75% for retention projects.

• Requires Alabama Development Office Director and Director of Finance to conduct public revenue estimates and recommend projects to the Governor, who has sole discretion to approve companies as "approved companies."

• Approved companies must enter into qualifying project agreements specifying eligible employees (minimum 36 hours/week), incentive periods (maximum 20 years), and minimum job or capital investment requirements; withholding incentives capped at 100% of project capital costs.

• Eligible employees receive a tax credit equal to 100% of withholding incentives retained by their employer; companies cannot claim capital credits under existing law if they receive withholding incentives.

• Becomes effective only upon ratification of a related constitutional amendment; otherwise the act is null and void.