AL HB517

Employers who loan qualified employees to teach career and technical education (CTE) programs at public high schools or community colleges may claim state tax credits equal to the employee's salary during the teaching assignment, capped at $250,000 per employer and $10 million annually statewide.

Qualified employees must have at least 3 years of occupational experience or industry-recognized certification, pass a background check, and complete a mandatory online training program covering classroom management, instructional methods, and student safety.

Teaching assignments require a minimum of 300 hours of direct instruction per academic year and must be formalized through a memorandum of understanding between the employer and educational institution.

A new workforce teaching certificate allows industry professionals to serve as classroom instructors while remaining employed and paid by their private-sector employer; certificate holders receive liability protection except for willful misconduct.

Tax credits may be claimed beginning January 1, 2027, with the program set to expire December 31, 2031, unless extended by the Legislature; the State Department of Education must submit an effectiveness report by July 1, 2031.