AL SB52

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 employer, up to a maximum of $1,000 per employee, and becomes available in the tax year after the employee completes 12 consecutive months of employment.

Credit applies against Alabama income taxes under Chapter 16 or Chapter 18 of Title 40 of the Code of Alabama 1975, is non-refundable and non-transferable, and is available on a pro rata basis to owners or members of S corporations and entities taxed under subchapter K of the Internal Revenue Code.

Total credits cannot exceed $10,000,000 per fiscal year.

Tax credit is available for tax years beginning January 1, 2026, and thereafter, with the act becoming effective January 1, 2026.