Taxation, tax credits, Alabama employers provided a tax credit for employees targeted under the federal Work Opportunity Tax Credit program

SB 52 creates a state tax credit for Alabama employers who hire employees from groups targeted under the federal Work Opportunity Tax Credit (WOTC) program. Employers can claim a credit equal to their federal WOTC credit, up to $1,000 per qualifying employee, after the employee completes 12 consecutive months of work. The credit applies to Alabama income tax or financial institution excise tax, with a total annual limit of $10 million across all employers. It becomes effective January 1, 2026, and is available for tax years beginning after that date.