Alabama § 16-37A-6 - Administration. [Credit Terminates Dec. 31, 2031]

§ 16-37A-6. Administration. [Credit Terminates Dec. 31, 2031]

(a) The Department of Revenue may adopt rules for implementation and enforcement of this chapter.

(b) The department shall establish a process to approve agreements, and the Department of Revenue shall allow tax credits in accordance with the following:

(1) Upon receipt of an executed agreement, the department shall issue a TRAIN Act credit reservation certificate to the employer.

(2) The certificate shall state the maximum amount of credit reserved for the employer and the corresponding teaching assignment, which may span multiple tax years.

(3) Tax credits reserved by certificates issued in a prior calendar year shall count against the cap for the calendar year in which the certificate was issued.

(4) The department shall track credit reservations by taxpayer and shall deny or reduce any requested reservation that would cause the taxpayer to exceed the per-taxpayer limitation established in Section 16-37A-4(i).

(c) The department, in consultation with the Department of Workforce and the Executive Committee of the Alabama Workforce Board, shall administer the process for approving designated CTE programs that are eligible for participation under this chapter, pursuant to the annual sector approvals provided in Section 16-37A-3(4).

(d) In order to claim a tax credit, a taxpayer must file the appropriate forms with the Department of Revenue and provide a copy of its TRAIN Act credit reservation certificate, documentation of the agreement, proof of salary payments made during the tax year for which the credit is claimed, proof of donations to a community development foundation made pursuant to this chapter for the tax year for which the credit is claimed, and any other information required by the Department of Revenue.

(e) The department, with information from the Department of Revenue as requested, shall submit an annual report by the third legislative day of each regular session of the Legislature to the Governor, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Legislative Fiscal Officer summarizing:

(1) The number of tax credits approved and claimed;

(2) The number of employers, qualified employees, and institutions participating;

(3) Geographic distribution; and

(4) Program outcomes.

(f) No later than July 1, 2031, the department shall submit to the Governor and the Legislature a report evaluating the effectiveness of the TRAIN Act, including data on participation, geographic distribution, and workforce outcomes, and the report shall include recommendations as to whether the program should be extended, modified, or allowed to expire.