AL HB118

Establishes a state income tax credit for recruited workers (law enforcement officers, nurses, teachers) and remote workers who relocate to specified Alabama counties.

Credit amounts vary by county tier: $30,000 for Tier 1 counties (population under 25,000), $20,000 for Tier 2 counties (25,000-50,000), $10,000 for Tier 3 counties (50,000-100,000), with an additional $5,000 available in opportunity zones.

Eligibility requires individuals to have lived outside Alabama for the entire calendar year before claiming the credit and to reside in an affected county for at least six months during the tax year claimed; remote workers must also have at least $55,000 in annual taxable income.

Tax credits are limited to three tax years per individual, non-refundable and non-transferable, with unused credits carryable forward for up to five years; aggregate annual cap of $2,000,000 for all taxpayers.

Credit becomes effective January 1, 2024, and continues through the 2028 tax year unless extended by the Legislature; the act itself becomes effective June 1, 2024.