HB36 - Alabama Small Business Jobs Act Summary

• Establishes a one-time tax credit of $1,500 for each qualified new full-time employee hired by Alabama small business employers with 75 or fewer employees.

• Credits apply only when a new employee completes 12 consecutive months of full-time employment and earned at least $40,000 in wages while residing in Alabama.

• Employer must demonstrate net employee growth equal to or exceeding the number of qualified new employees claimed in the current tax year plus all previously claimed employees.

• Unused credits may be carried forward up to three years but cannot reduce tax liability below zero and are not refundable or transferable.

• Provides an additional $1,000 tax credit for hiring recently deployed unemployed veterans who received honorable discharge within two years of hire and meet unemployment benefit requirements.

• Requires Department of Revenue to promote available tax credits to small business owners and tax professionals by December 31, 2016.

• Becomes effective 90 days after passage for employees hired on or after the effective date, with credits applicable to tax years beginning January 1, 2016 or later.