AL HB326

Establishes an income tax credit for taxpayers in Class 3 municipalities (organized under Act 618, 1973) who hire student workers under age 19 enrolled in school to work during school breaks, after school, weekends, summer, or official holidays.

Credit amount equals wages paid to each student worker during the taxable year, up to a maximum of $2,500 per student worker per year, claimed in the year the nine-month employment period ends and the following year.

Credit limited to 50 percent of the taxpayer's tax imposed for the taxable year, with unused portions carried forward for up to five succeeding years.

Credit available only to businesses and employees in designated economic development areas: 8A Businesses, Empowerment Zones, HUB Zones, I-65 Corridor, Renewal Communities, Tax Incremental Financial Zones, and Enterprise Zones.

Phased cap on total student workers claimed statewide: 50 workers in year one, 75 workers in year two, and maximum 100 workers from year three forward; effective January 1, 2014.