106843-1:n:02/05/2009:GPO-BT/ebo-pa
| SYNOPSIS: | Anticipated growth for the Alabama economy will require skill levels beyond those gained in high school. Almost all workers will need training and education at the postsecondary level. Employers in Alabama still have difficulties finding and hiring enough job candidates with employable skills necessary in the state's advancing economy. |
| This bill proposes, as a monetary inducement or incentive for adult workers to seek educational advancement and training for both higher paying and more demanding jobs, an income tax credit for both the employee and the employer based on the costs associated with the additional education and training for these positions. |
To provide, as a monetary inducement or incentive for adult workers to seek educational advancement and training for higher paying and more demanding jobs, an income tax credit for both the employee and the employer for the costs associated with the additional education and training for these positions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This Act will be known as the "Back to School Tax Credit."
Section 2. (a) For tax years beginning after December 31, 2008, an Alabama income tax credit is hereby made available to qualified individuals and employers for an amount equal to 50% of the qualifying costs paid or incurred by the qualified individual or employer during the tax year. The credit shall be allowed against the tax imposed by Chapter 18, Title 40 of the Code of Alabama, 1975. This tax credit shall not be allowed to decrease a taxpayer's tax liability to less than zero. The credit is not refundable or transferable. The credit shall be available, on a pro rata basis, to the owners of qualified employers that are entities taxed under sub-chapters S or K of the Internal Revenue Code.
(b) (1) Qualifying Individual. To be defined by workforce development.
(2) Qualifying Employer. To be defined by workforce development.
(3) Qualifying Costs. To be defined by workforce development.
Section 3. The provisions of this Act are severable. If any part of this Act is declared invalid or unconstitutional, that declaration shall not affect the part which remains.
Section 4. All laws or parts of laws which conflict with this Act are hereby repealed.
Section 5. This Act shall become effective for tax years beginning on or after January 1, 2009.