Alabama · Jobs · AL-JOBS-001
Full Employment Act Credit
Publication revised September 24, 2026. Sourcebook page 26.
Credit amount / calculation
$1,000 once for each qualifying new job after 12 consecutive months of employment.
Business fit and eligible activity
Small businesses creating qualifying jobs may receive an income-tax credit. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
The business must meet the historical June 9, 2011 existence and 50-employee tests, net employment growth rules, and wages above $10 per hour. This is not a general credit for every newly formed small business.
Illustrative business benefit
An eligible small mill adds three qualifying jobs and retains each worker for 12 consecutive months. The credit is 3 x $1,000 = $3,000, subject to its available tax liability.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Verify the historical business-size and existence requirements, then document the full year of employment.
Official sources
- Alabama Department of Revenue - Income Tax Incentives (alabama.gov)
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