HB116 Summary

• Establishes an income tax credit for taxpayers who employ public high school students during school breaks, after school, or on weekends whose residence is within 30 miles of the U.S. Highway 80 corridor in Alabama.

• Credit equals wages paid to the student worker up to a maximum of $2,500 per student per year, with eligibility requiring at least nine months of employment retention.

• Taxpayers may claim the credit in the year the nine-month employment period ends and the following year.

• Credit cannot exceed 50 percent of the taxpayer's annual tax liability after other credits, with unused portions carried forward for up to five succeeding years.

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