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 (revenue.alabama.gov)
Related programs
Alabama Investment Credit
Up to
Certified manufacturers can receive multi-year credits for qualified capital investment; useful for larger fixed-facility expansions.
Apprenticeship Tax Credit
Per-apprentice credit subject to state program certification
Potentially useful for mills and logging businesses with registered apprentices.
Port Credit
Discretionary credit based on increased cargo
A manufacturer increasing cargo through an Alabama public port may receive a credit tied to port usage and economic activity.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Employer-Provided Child Care Credit (Internal Revenue Code §45F)
For 2026+
Broad employer credit that can apply to logging companies and mills providing or contracting for qualified employee child care; substantially expanded for 2026.