The Alabama House of Representatives on Tuesday approved new legislation sponsored by State Rep. Kyle South, R – Fayette, that would provide a state income tax credit to small businesses for each new employee they hire.

The bill is included in the House Republican Caucus’s “Right for Alabama” legislative agenda that was announced prior to the session’s start, according to a release from the office of House Speaker Mike Hubbard.

“Over the last 20 years, small businesses have created more than 65 percent of all new jobs in our nation, but Alabama and other states have focused almost exclusively on providing incentives to industries and large employers,” South said. “By passing my bill, the Legislature can send the strong message that we care about small business owners and employees and understand and value the important role they play in Alabama’s economy.”
Under the new legislation, small businesses with 75 employees or less will be able to claim a $1,500 tax credit for each qualified, new, full-time employee hired.

The business may also claim an additional $1,000 tax credit if the new employee is an unemployed veteran recently returned from deployment. This credit comes as part of the Heroes for Hire Act passed by the legislature in 2012.
To qualify for the credit, businesses must retain the new employee for a consecutive 12-month period, and the employee must earn a salary of $40,000 a year or more. The employee must also be an Alabama resident in order to ensure that the credits are being used on behalf of Alabamians.

South said the state can now offer these credits with little or no loss of state budget dollars because the income taxes that these previously unemployed workers will begin to pay will offset the cost of providing the tax credit.
“Through whichever prism you view it, this bill is a win for small business owners, it’s a win for the newly-hired and their families, and it’s a win for the state,” South said.

To view the original article from the Birmingham Business Journal, click here.

MONTGOMERY, AL (WSFA) –
A sales ban on fetal body parts, small business tax credits, and Second Amendment protections are among a host of items unveiled Thursday as part of the Alabama’s House Republican Caucus’ upcoming legislative agenda. The Caucus is promising to use its supermajority status to focus on a host of issues and is branding its agenda “Right for Alabama”.

Agenda points focus on 11 specific issues. They include budgeting and pension reforms, school and student safety, small business tax credits, taxpayer protections, protections against Syrian refugee threats, teacher pay raises and classroom technology upgrades, a constitutional amendment to solidify the state’s ‘right to work’ status, and protections for gun owners and unborn children.

House Speaker Mike Hubbard (R-Auburn) and other House GOP leaders gathered to release the agenda at the Statehouse. The bills will get first priority in the upcoming session, which starts on Feb. 2.

Here’s exactly what the “Right for Alabama” agenda says about each specific point.

Zero-Based Budgeting Reform – In order to bring a new level of scrutiny, transparency, and accountability to the appropriations process, the Alabama House Republican Caucus will begin to implement a new “zero-based” budgeting system. This revolutionary new process will require state agencies to fully account for each dollar they receive, help identify ineffective programs that are in need of elimination, and potentially save or re-direct substantial amounts of taxpayer dollars.

Pension Reform – The Alabama House Republican Caucus will continue its efforts to ensure the long-term solvency and fiscal health of the Retirement Systems of Alabama while protecting and preserving the current level of benefits earned by existing retirees and employees.

Alabama Taxpayer Advocate Act – Under current law, the role of Taxpayer Advocate must be filled by an employee within the Department of Revenue who is selected by the commissioner and reports directly to her. In order to ensure fair and equitable treatment of Alabama taxpayers, House Republicans will offer legislation requiring the Taxpayer Advocate to be appointed by the governor from a pool of candidates recommended by a committee of government officials and business professionals. The advocate’s role and duties in protecting taxpayers’ interests would be expanded significantly under this measure.

Small Business Job Creation Tax Credit – During the past five years, Alabama has transformed into one of the most business-friendly states in the nation, and the Legislature has worked to provide incentives necessary to lure thousands of new, high-paying jobs to our state. Small businesses, however, have created more than 65% of all new jobs over the past 20 years nationally. To encourage further job expansion within the state, Alabama House Republicans will propose a $1,500 income tax credit for every new, qualified employee hired by small businesses operating within the state.

Alabama’s Right To Work Constitutional Amendment – Although Alabama and many other southeastern states are firm right-to-work states, labor unions have stepped up their efforts to organize industrial facilities across the region after experiencing recent successes that include Volkswagen in Tennessee and Golden Dragon in Wilcox County. Alabama passed one of the nation’s first right-to-work laws roughly 60 years ago, but House Republicans believe it is time to enshrine that employment protection in our state constitution and will offer an amendment to be included on the November 2016 election ballot.

Protecting Public Safety from Syrian Refugee Threats – Recognizing the inherent risks that exist and lacking confidence in federal claims of thorough background checks, the Alabama House Republican Caucus will oppose any Obama administration effort to relocate masses of Syrian or other Middle Eastern refugees to our state. The possibility of even one “refugee” with a questionable background slipping through the system poses a danger to our public safety that Alabamians should not be forced to endure.

Preserving Second Amendment Constitutional Rights – The Alabama House Republican Caucus pledges to assist members of our federal delegation in overturning Barack Obama’s unconstitutional executive orders attacking our Second Amendment right to own firearms.

School Security and Student Safety Task Force – Alabama schools have been extremely fortunate to avoid a violent situation like those that have occurred in other states, but we must continue looking for ways to improve school safety and ensure we are as prepared as possible to prevent or mitigate any situation that might arise. The Alabama House Republican Caucus will create a task force comprised of key education, law enforcement, and emergency management leaders from across the state and tasked with completing a comprehensive review and assessment of state laws, regulations, and protocols relating to security and student safety in our public K-12 schools, colleges, and universities. The Legislature will consider the task force’s resulting recommendations for improvement.

Teacher Pay Raise – Recognizing their importance in preparing students for success in the 21st Century workplace, House Republicans will work to provide Alabama’s K-12 and post-secondary education personnel with a pay raise.

Wireless Infrastructure Renovation for Education (WIRED) Act – An extensive knowledge of operating computers will be required of everyone in the 21st century workforce, so today’s students must be proficient in the latest technologies. Three out of five schools in the United States currently lack the infrastructure needed to take advantage of wireless technology, and that number is believed to be even higher in Alabama. The WIRED Act proposed by House Republicans will create a framework for putting wireless broadband in all K-12 public schools by providing grants to local systems for the purchase, installation or upgrade of wireless infrastructure. Schools already possessing the necessary infrastructure may use the grants to purchase wireless devices and technology.

Unborn Infants’ Dignity of Life Act – Recent reports about outrageous acts by Planned Parenthood and its representatives have prompted public outcry regarding the organization and the cavalier practices it utilizes regarding unborn life. In order to ensure that these atrocities do not occur in Alabama, the House Republican Caucus will offer legislation banning the sale of the bodily remains of unborn infants.

Copyright 2016 WSFA 12 News. All rights reserved.

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Legislative session expected to address new tax credits, infrastructure problems.

The Alabama Legislative Session begins on Feb. 2, and there are several issues likely to be debated that will impact small business owners. Here’s a look at them.

HSA Tax Deduction

Legislation seeking to align Alabama’s income tax law to federal law with regard to health savings accounts—SB 9, HB 70 and HB 215—failed in the 2015 session, but is expected to resurface this year. These bills would give a state income tax deduction to those who make contributions to their HSAs to pay for healthcare costs.

Tax Rate Notification

Legislation on this topic—SB 322—also failed in the 2015 session, but we expect to see it again in the 2016 session. Under this bill, taxpayers would not be liable for collection and charge of incorrect tax rates based on the rate published by the Alabama Department of Revenue website. Local governments would have procedures with which to notify ADOR of rate changes, and these changes wouldn’t take effect until the first day of the third month following the notification. This would allow business owners time to update their bookkeeping for local and state changes and relieve them of penalties or interest for use of outdated rates.

Tax Credits

Two bills, which would give business owners tax credits for hiring veterans and for establishing an apprenticeship training program, are currently in draft form. “A trained and ready-to-work workforce is a priority for Alabama business owners,” says Rosemary Elebash, NFIB’s Alabama state director.

General Fund Cuts

Alabama legislators have stayed opposed to tax increases in the face of the state’s budget woes, and as a result of this and rising costs, cuts to the General Fund are expected this year, the Montgomery Advertiser reported last month.

The chairs of the Legislature’s General Fund committees, Representative Steve Clouse and Senator Trip Pittman, told the Advertiser that level funding in the budget was an optimistic best-case scenario.

In the current budget, Medicaid, Corrections, Mental Health, Human Resources and Pardons and Paroles were shielded from cuts, but Sen. Pittman says he doesn’t think any agency would get protection this year. Budget committees will hold budget hearings this month in preparation for the beginning of session.

Infrastructure

Alabama earned a C- for its infrastructure system of roads, bridges, ports, railroads, airports and more, according to an assessment recently conducted by the American Society of Civil Engineers.

ASCE studied 11 infrastructure categories, grading each individually:

Aviation (B-)

Bridges (C-)

Dams (N/A—Alabama has no dam safety program)

Drinking water (C+)

Energy (B)

Inland waterways (D+)

Ports (B-)

Rail (B-)

Roads (D+)

Transit (D)

Wastewater (C-)

“Whether you’re driving across roads and bridges, taking a shower, or charging your cell phone, infrastructure affects everyone in Alabama,” the study says. “Infrastructure also impacts our businesses and helps move our economy, taking freight from ports to store shelves and taking workers to their jobs.”

Proposals to solve this growing problem are expected to be debated in session, starting next month.

For the original article from NFIB click here