“Heroes for Hire” Tax Credit Act of 2012. [Repealed by Act 2023–546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature]

Ala. Code tit. 40, ch. 18, art. 13

in effect

Ala. Code § 40-18-320 Short Title. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature)

40-18-320. Short Title. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature) This article shall be known and may be cited as the Veterans Employment Act. (Act 2012-168, p. 254, §1; Act 2018-194, §1.)

Ala. Code § 40-18-320.1 Definitions. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature)

40-18-320.1. Definitions. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature) As used in this article, the following terms have the following meanings: (1) COMBAT VETERAN. A member of the Armed Forces of the United States who served in a United States Department of Defense designated combat zone and was a resident of the State of Alabama at the time of his or her service. (2) RECENTLY DEPLOYED UNEMPLOYED VETERAN. An individual who meets the criteria for an unemployed veteran except that he or she must have received an honorable or general discharge from active, federal military service within the two-year period preceding the date of hire. (3) UNEMPLOYED VETERAN. An individual who is all of the following: a. Was a resident of Alabama at the time of entry into military service or was mobilized to active, federal military service while a member of the Alabama National Guard or other reserve unit located in Alabama, regardless of the resident’s home of record. b. Received an honorable or general discharge from active, federal military service preceding the date of hire. c. Has certification by the Department of Labor at the time of hire of either of the following: 1. Collecting or eligible to collect unemployment benefits. 2. Having exhausted his or her unemployment benefits. (Act 2018-194, §2.)

Ala. Code § 40-18-321 Availability of Tax Credit. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature)

40-18-321. Availability of Tax Credit. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature) In addition to the tax credit allowed for in the Full Employment Act of 2011 or the Alabama Small Business and Agribusiness Jobs Act, an additional one thousand dollar ($1,000) tax credit is available to a business that meets the requirements for a tax credit under Section 40-18-290 through 40-18-293 or Sections 40-18-391 and 40-18-392, for each unemployed or combat veteran hired for a full-time position paying at least fourteen dollars ($14) per hour, the majority of the duties of which are at a business location within Alabama. The additional credit shall be available in the tax year during which the employee has completed 12 months of consecutive employment. (Act 2012-168, p. 254, §2; Act 2016-188, p. 435, §5; Act 2018-194, §3.)

Ala. Code § 40-18-322 Eligibility for Tax Credit. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature)

40-18-322. Eligibility for Tax Credit. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature) For all tax years beginning on or after January 1, 2018, a qualified employer subject to the requirements of this article and Sections 40-18-290 through 40-18-293 shall be eligible for an additional nonrefundable credit against the income tax liability imposed or the state portion of the financial institution excise tax owed in an amount equal to two thousand dollars ($2,000) for each new unemployed or combat veteran hired after March 12, 2018, for a full-time position paying at least fourteen dollars ($14) per hour, the majority of the duties of which are at a business location within Alabama. The additional credit shall be available in the tax year during which the employee has completed 12 months of consecutive employment. (Act 2012-168, p. 254, §3; Act 2018-194, §3.)

Ala. Code § 40-18-323 Expenses Associated with a Start-Up Business. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature)

40-18-323. Expenses Associated with a Start-Up Business. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature) (a) In addition to the definition in Section 40-18-321, EXPENSE ASSOCIATED WITH A START-UP BUSINESS is defined as any of the following: (1) Expenses associated with the development of a business plan. (2) Professional services associated with the formation of the business (e.g., attorney and accounting services). (3) An analysis or survey of potential markets, products, labor supply, or transportation facilities. (4) Advertisements for the opening of the business. (5) Salaries and wages for employees who are being trained and their instructors. (6) Travel and other necessary costs for securing prospective distributors, suppliers, or customers. (7) Salaries and fees for executives and consultants, or for similar professional services. (b) For all tax years beginning on or after January 1, 2012, a recently deployed unemployed veteran shall be eligible for a nonrefundable credit against the income tax liability imposed in an amount up to a total of $2,000 for expenses associated with one start-up business in which the recently deployed unemployed veteran holds at least 50-percent ownership interest. A credit under this subsection may only be taken for a business started after April 2, 2012, that is located within Alabama and that shows a net profit of at least $3,000 for the year in which the credit is taken. (c) An employer shall not claim the credit in Section 40-18-322 for an employee who has claimed the credit under Section 40-18-323, and a recently deployed unemployed veteran shall not claim the credit in Section 40-18-323 if an employer has claimed his or her hire for the credit in Section 40-18-322. (Act 2012-168, p. 254, §4.)

Ala. Code § 40-18-324 Duties and Procedures. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature)

40-18-324. Duties and Procedures. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature) (a) The Department of Labor, in coordination with the Department of Revenue, the Department of Economic and Community Affairs, and the Department of Veterans’ Affairs shall: (1) Promote awareness of the unemployed veteran tax credit authorized in this article to employers and eligible veterans. (2) Establish procedures for prequalifying an individual as an unemployed veteran and for providing notice to the Department of Labor when a new full-time employee is hired. (3) Establish procedures for certifying a qualified employer’s compliance, or in the case of a credit under subsection (b) of Section 40-18-323, a recently deployed unemployed veteran’s compliance, with the eligibility and expense verification requirements to claim the credit authorized under this section. (4) Adopt measurable goals, outcomes, and an audit strategy to assess the utilization and performance of the credits authorized in this article. (5) On or before January 15, 2014, submit a written report on its assessment of the credits to the Alabama House Committees on Military and Veterans Affairs, Commerce and Small Business and Ways and Means-Education, and to the Alabama Senate Committees on Veterans and Military Affairs, Finance and Taxation-ETF, and Job Creation and Economic Development. (6) Engage in efforts to promote the hiring of unemployed veterans through hiring practices of the State of Alabama. (b) The tax credits authorized by Act 2018-194 shall not be claimed by a qualified employer until the status of the unemployed veteran is verified by the Alabama Department of Labor. (c) The tax credits authorized by Act 2018-194 shall not be available for any unemployed veteran hired after December 31, 2023, unless extended by an act of the Legislature. (d) The Department of Revenue shall, on an annual basis, provide the Legislative Services Agency with the total amount of credits claimed under the Veterans Employment Act in accordance with Act 2015-237. (Act 2012-168, p. 254, §5; Act 2018-194, §§3-6.)

Ala. Code § 40-18-325 Repeal of Incentives. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature)

40-18-325. Repeal of Incentives. (Repealed by Act 2023-546, § 7, Effective December 31, 2028, Unless Extended by Act of Legislature) (a) The Veterans Employment Act, Article 13, commencing with Section 40-18-320, Chapter 18, of Title 40, is repealed effective December 31, 2028, unless extended by an act of the Legislature prior to that date for no more than five additional years. (b) The repealing of the incentives in subsection (a) shall only affect the availability of the tax credits after December 31, 2028, and shall not cause a reduction or suspension of any credits awarded on or prior to December 31, 2028. (Act 2023-546, §§7, 11.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026