HB113 Summary

• Provides an income tax credit to taxpayers who employ students under age 19 enrolled in public high schools in Montgomery County, Alabama, to work during school breaks, after school, weekends, summer, or official holidays.

• Requires employers to retain the student worker as an employee for at least nine months to qualify for the credit.

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

• Limits the annual credit to 50 percent of the taxpayer's tax liability reduced by other allowable credits, with unused portions carrying forward for up to five years.

• Credit is effective beginning January 1, 2016, for the 2016 taxable year and subsequent years.