Ala. Legislature offers tax credit for hiring vets
MONTGOMERY, Ala.—The Alabama Legislature is ready to offer new tax credits to businesses that hire unemployed veterans.
The Alabama Senate gave final approval to a bill Tuesday that provides a tax credit of $1,000 for a business that hires an unemployed veteran who was deployed overseas and is now within two years of discharge. There's also a tax credit of up to $2,000 to help an unemployed veteran cover the costs of starting a small business.
The bill, backed by Gov. Robert Bentley, passed the House last month and now goes to the governor for signing into law.
Proponents said the timing is right with veterans returning from Iraq and Afghanistan and seeking jobs in a tough economy.
"It's a way for us to repay those show went off to protect the rest of us," said the bill's sponsor, Rep. DuWayne Bridges, R-Valley.
Legislative fiscal experts predict the bill could reduce the state's income tax collections by $1.26 million annually.
The bill piggybacks on laws the Legislature enacted in 2010 and 2011 to give tax credits to businesses that create jobs for the unemployed.