Governor Riley Celebrates First Month of Healthcare Tax Incentives, Reminds Small Businesses to Take Advantage

Alabama's Business Climate Ranks Among Nation's Best

Governor Riley's Compromise Tax Relief Proposal - News Release

Governor Riley Promoting Tax Relief Compromise in Birmingham and Huntsville

Helping Small Businesses Succeed
Governor's Riley ultimate goal when it comes to Small Business in Alabama is helping Small Businesses succeed. Small Businesses are the backbone of our economy. Our own homegrown entrepreneurs who take risks to begin a business from the ground up have contributed greatly to our economic success.
"As the previous owner of a number of small businesses, I understand that owning and operating a business requires a great deal of dedication and patience. Many times, owners do not have the time to research state and federal laws, grant and loan opportunities, or economic development incentives. We need to provide these businesses with assistance they need to be successful."
To encourage Alabama small businesses to provide health insurance coverage for employees, I have proposed legislation allowing them to deduct twice the amount they pay for health insurance premium for their state income taxes.
In order to encourage the employees of these small businesses to participate in their employer's health insurance plans, employees will be allowed to deduct twice the amount they contribute toward their health insurance premiums from their individual income taxes.

Expand Incentives to Help Existing Industries Grow
Hundreds of national and international companies have chosen to make Alabama their home. While these companies are tremendous assets, our existing industries have truly helped bring Alabama to the pinnacle of this economic boom.
Many of the companies are home-grown and have become much more than just a place to work. They are virtually intertwined with the communities in which they are located and serve as a vital part of both the economic and social structure. The companies sponsor local events, give to local charities, and support local sports teams. They are more than just businesses-they are strong and dependable corporate citizens.
There are a number of existing industries in Alabama that have used a small amount of incentives to create hundreds of jobs for local workers. We must continue to do everything we can for the same companies that have helped us build the best economy in Alabama's history.
We will expand eligibility for incentives in order to help existing Alabama companies grow their operations.
We will undertake a comprehensive review of our current statutory incentives an propose changes to ensure that all high growth, high demand and high paying industries are eligible for assistance.

Alabama Work Opportunity Income Tax Credit
Alabama's surging economy has created a world of opportunities for many Alabamians. Workers from almost every section of society are enjoying the fruits of a thriving economy.
Unfortunately, there are still a few segments or our population that have not been able to capitalize on the opportunities that are out there. While we have a number of programs in the state designed to help many of these people get to work, we must have a more focused effort. We will establish the Alabama Work Opportunity Income Tax Credit that will provide employers with an incentive to hire people from sectors having a high unemployment rate or special employment needs.
The Alabama credit will be tied to and based upon its federal counterpart. The credit will be a percentage of the qualified wages paid during an employee's first year of employment, base on the number of hours worked.
Target groups of employees include a qualified recipients under the temporary Assistance for Needy Families program, food stamp and Supplemental Security Income recipients, veterans, high-risk youth, vocational rehabilitation referrals, and summer youth employment security agency that an employee is a targeted group member.

"Back to School" Tax Credit
Training our workforce is a critical element in sustaining the unparalleled success we have seen in our economic growth over the last several years. That is why I signed an executive order in 2003 that consolidated all state workforce development programs into a single office. Prior to the executive order, seven different state agencies administered more than $104 million in federal workforce training materials named the Alabama Office of Workforce Development as the top workforce development agency in the United States. The award recognized Alabama's leadership in designating an interagency strategic plan and comprehensive worker credentialing program, which was launched in August.
The new Career Readiness Certificate serves as a common language between employers and job seekers. It is a portable skills credential, assuring employers that job applicant actually has the basic skills they seek.
It has been reported that by 2010 more than 80% of all jobs will require skill levels beyond those gained in high school. Almost all workers will need training and education at the postsecondary level.
I will propose a "Back to School" Tax Credit that will provide an incentive for adult workers to go back to school to receive skills training in "high growth, high demand, and high paying" jobs as identified by the Alabama Office of Workforce development.
The tax credit will be available to both employees and employers and will be based on the amount invested in the training program by each.