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Alabama Workforce Training Tax Credits: What Employers Can Claim

Alabama's apprenticeship tax credit ($1,250 per apprentice) expired on December 31, 2024, and the Revenue Department lists no replacement. The live state credits are the Alabama Jobs Act Jobs Credit (up to 3% of payroll) and Investment Credit (up to 1.5% of capital investment), which are negotiated for qualifying projects and need Commerce approval. The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025.

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HOW IT WORKS

Four steps, in this order.

  1. 1

    Check the project meets the Jobs Act job and investment thresholds

  2. 2

    Apply to the Alabama Department of Commerce before committing to the project

  3. 3

    Commerce recommends; the Governor and Finance Director approve and set the terms

  4. 4

    Claim the credit or rebate under your project agreement

3 VERIFIED PROGRAMS

Where the Alabama money comes from.

Run by Alabama Department of Commerce (Jobs Act) and Alabama Department of Revenue. Every figure is from an official page, linked on each card.

Alabama Jobs Act Jobs Credit

Up to 3% of payroll for up to 10 years
OPEN, BY PROJECT APPROVAL
WHAT YOU GET

A rebate of up to 3% of the prior year's gross payroll for eligible Alabama-resident employees, for up to 10 years.

HOW MUCH

Up to 3% of payroll; up to 4% in targeted or jumpstart counties, for technology companies, and for pharma and medical projects; plus 0.5% for veterans or BRAC sites.

WHO RECEIVES THE MONEY

The employer, as a cash rebate.

WHO QUALIFIES
  • A qualifying business activity under Code of Alabama 40-18-372(1)
  • 50 net new full-time jobs, or 10 in targeted or jumpstart counties and for technology companies
  • Local incentive commitment required
  • Not a hiring credit for ordinary growth; it is negotiated per project
Before you start: Yes. The Governor and Finance Director give final approval after a Commerce recommendation.
HOW TO APPLY
  1. 1Contact the Commerce Recruitment and Retention office or a project manager
  2. 2Submit the company and community applications
  3. 3Sign the project agreement if approved

Deadlines and windows: Program sunset date is July 31, 2028 under Act 2023-34.

SOURCE: MADEINALABAMA.COM

Alabama Jobs Act Investment Credit

Up to 1.5% of capital investment a year
OPEN, BY PROJECT APPROVAL
WHAT YOU GET

A credit of up to 1.5% of qualified capital investment each year against Alabama income and other taxes.

HOW MUCH

Up to 1.5% a year for up to 10 years, or 15 years in targeted or jumpstart counties. Carry forward 5 years.

WHO RECEIVES THE MONEY

The employer, as a tax credit.

WHO QUALIFIES
  • Same qualifying project and job thresholds as the Jobs Credit
  • Targeted or jumpstart counties need $2,000,000 of capital investment
Before you start: Yes. Approved with the project.
HOW TO APPLY
  1. 1Apply with the Jobs Credit through Commerce

Deadlines and windows: Program sunset date is July 31, 2028 under Act 2023-34.

SOURCE: MADEINALABAMA.COM

Alabama Apprenticeship Tax Credit

$1,250 per apprentice, expired 12/31/2024
CLOSED, EXPIRED
WHAT YOU GET

Was $1,250 per qualifying apprentice (up to 10), plus up to $500 for apprentices 18 or younger. The credit ended.

HOW MUCH

Expired December 31, 2024. Nonrefundable, no carry-forward.

WHO RECEIVES THE MONEY

The employer, as an income tax credit.

WHO QUALIFIES
  • Registered apprentice with a written agreement
  • Certified by the Alabama Office of Apprenticeship
Before you start: Eligibility was certified by the Alabama Office of Apprenticeship.
HOW TO APPLY
  1. 1No claims open. Ask the Alabama Office of Apprenticeship at 334-280-4414 whether the legislature has renewed it

Deadlines and windows: Expired. The Office of Apprenticeship page, dated 2024, still shows the credit; the Revenue Department page is the newer source.

SOURCE: REVENUE.ALABAMA.GOV
AVOID THESE

What gets Alabama Tax Credit claims denied.

STRAIGHT ANSWERS

Alabama Tax Credit questions.

Is the Alabama apprenticeship tax credit still available?

No. The Revenue Department says it expired December 31, 2024. The Office of Apprenticeship page still describes it, so call 334-280-4414 to confirm nothing has changed.

SOURCE: REVENUE.ALABAMA.GOV
What is the status of WOTC for 2026 hires?

It lapsed for people who start work after December 31, 2025. Alabama says applications for later hires are held in a queue pending federal renewal.

SOURCE: WORKFORCE.ALABAMA.GOV
Can a small employer use the Jobs Credit?

Only for large projects: 50 net new full-time jobs, or 10 in a targeted or jumpstart county. Smaller employers should look at OJT or incumbent worker funds.

SOURCE: MADEINALABAMA.COM
When does the Jobs Act end?

Act 2023-34 moved the Jobs Act sunset date to July 31, 2028, so it is still in force.

SOURCE: REVENUE.ALABAMA.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on . Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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