AL HB259

Establishes state income tax credits for recruited workers (law enforcement officers, nurses, teachers) and remote workers who relocate to Alabama counties with populations under 100,000.

Credits range from $5,000 to $30,000 annually based on county tier: $30,000 for Tier 1 counties (under 25,000 population), $20,000 for Tier 2 (25,000-50,000), $10,000 for Tier 3 (50,000-100,000), plus an additional $5,000 for opportunity zones.

Eligible workers must have resided outside Alabama for the entire year before claiming the credit and must reside in the target county for at least six months during the tax year; remote workers must earn at least $55,000 annually.

Credits may be claimed for a maximum of three tax years and cannot reduce tax liability below zero; unused credits are non-refundable but may carry forward up to five years.

Tax credits are capped at $2,000,000 in aggregate annually and effective for tax years 2026 through 2030, unless extended by the Legislature.