HB 414 Summary

• Establishes the Alabama Small Business Jobs Act to provide a one-time tax credit of $1,250 per qualified new employee hired by Alabama small business employers with 50 or fewer employees.

• Requires qualified new employees to be full-time Alabama residents earning at least $40,000 annually and employed for 12 consecutive months, with employers maintaining net employee growth to qualify for credits.

• Credits are allowed against income tax (Chapter 16 or 18, Title 40) and may be carried forward up to three years if unused; credits cannot reduce tax liability below zero and are non-refundable and non-transferable.

• Repeals the Full Employment Act of 2011 effective for tax years beginning January 1, 2016, except for taxpayers who claim credits under the previous act by the filing deadline for the tax year immediately following this act's effective date.

• Amends Section 40-18-321 to reference the Alabama Small Business Jobs Act and creates additional $1,000 tax credit for recently deployed unemployed veterans meeting specified military discharge and unemployment certification requirements.