SB109 Summary

• Establishes the "Apprenticeship Tax Credit Act of 2015" providing a $1,000 annual income tax credit for eligible employers who employ registered apprentices for at least seven full months of the taxable year.

• Defines "apprentice" as a worker at least 16 years old employed to learn an apprenticeable occupation under federal regulations (29 C.F.R. Part 29.4), and "eligible employer" as a taxpayer employing an apprentice under a registered apprenticeship agreement with the U.S. Department of Labor.

• Limits the credit to a maximum of four taxable years per individual apprentice, applies the credit against Alabama income tax under Chapter 18 of Title 40, and allows pro rata monthly application for apprenticeships lasting less than a full calendar year.

• Grants the Alabama Industrial Development Training (AIDT) agency authority to establish participation standards and promulgate rules, in coordination with the Alabama Community College System Chancellor and Department of Revenue.

• Credit becomes effective January 1, 2016, for the 2016 taxable year and thereafter; passed by the Senate on April 30, 2015, with a vote of 29-0.