AL HB437

Establishes an Alabama income tax credit of $1,000 per apprentice for eligible employers who employ an apprentice for at least seven full months of the taxable year.

Defines an apprentice as a worker at least 16 years old employed to learn an apprenticeable occupation under a written agreement registered with the U.S. Department of Labor's Office of Apprenticeship.

Limits the tax credit to four taxable years per individual apprentice and makes the credit non-refundable and non-transferable, though it is available on a pro rata basis to owners of pass-through entities taxed under Internal Revenue Code subchapters S or K.

Requires employers to apply annually for the credit covering the preceding calendar year, with pro rata monthly calculation available for apprentices employed for less than a full year.

Becomes effective January 1, 2016, with the Alabama Industrial Development Training (AIDT) agency authorized to promulgate rules and regulations for implementation in consultation with the Department of Revenue and Department of Commerce.