AL SB333

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 (P.L. 116-260).

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

Credit is non-refundable and non-transferable, applies on a pro rata basis to owners or members of entities taxed under Internal Revenue Code subchapters S or K, and cannot reduce tax liability below zero.

Annual credits are capped at $10,000,000 per fiscal year and are available beginning with the tax year starting January 1, 2025, and thereafter.

Department of Revenue is authorized to adopt rules for implementation, with the act becoming effective January 1, 2025.