SB90 Summary: Apprenticeship Tax Credit Act of 2016

• Establishes an Alabama income tax credit of up to $1,000 per apprentice for eligible employers, with a maximum of five apprentices per employer per year.

• Limits individual apprentices to receiving the credit for no more than four taxable years and caps total annual credits at $3,000,000 statewide.

• Requires apprentices to be at least 16 years old and employed for at least seven full months under a federally-registered apprenticeship agreement with the U.S. Department of Labor.

• Credit is effective January 1, 2017 through the 2021 tax year and is available only against Alabama income taxes; not refundable or transferable.

• Requires the Workforce Development Division of the Department of Commerce to provide annual reports to legislative committees on program effectiveness and to coordinate implementation with the Department of Revenue.