AL SB393

Establishes an Alabama income tax credit of $1,000 for eligible employers who employ an individual released from incarceration for at least seven months of the taxable year.

Defines eligible individuals as those convicted of a felony, incarcerated in a Department of Corrections facility, now released (on probation, parole, or after completing sentence), and who completed a certificate or associate degree through an Alabama Community College System correctional education program.

Limits the tax credit to a maximum of four taxable years per individual and prohibits the credit from reducing tax liability below zero, making it non-refundable and non-transferable.

Applies to employers who first employ a qualifying individual on or after the effective date, with the credit available on a pro rata basis to owners of entities taxed under Internal Revenue Code subchapters S or K.

Credit becomes effective January 1, 2016 for the 2016 taxable year and subsequent years; the Alabama Community College System, Department of Revenue, and Department of Corrections shall coordinate implementation and administration.