SB43 Summary

• Establishes an Alabama income tax credit and financial institution excise tax credit for employers who hire individuals from targeted groups under the federal Work Opportunity Tax Credit Program as defined in P.L. 116-260.

• Credit amount equals the federal tax credit taken by the employer, up to a maximum of $1,000, and becomes available in the tax year when an employee completes 12 months of consecutive employment.

• Credit is non-refundable and non-transferable, applies to Alabama income tax (Chapter 16) or financial institution excise tax (Chapter 18), and cannot reduce tax liability below zero.

• Annual cap of $10,000,000 in total credits per fiscal year, with pro rata distribution available to S-Corp and K-Corp entity owners or members.

• Available for tax years beginning January 1, 2024, and thereafter; becomes effective on the first day of the third month following passage and governor approval.