MONTGOMERY, Ala. – On Tuesday, March 31st, the Alabama Senate passed House Bill 58, the Alabama Jobs Act, sponsored by Sen. Phil Williams (R-Rainbow City) and Rep. Alan Baker (R-Brewton). HB58 now heads to the Governor for his signature.

The Alabama Jobs Act completely revamps how the state provides economic incentives to businesses that create new jobs in Alabama. Unlike previous incentive packages that provide up-front funding to businesses that promise to create new jobs, the Alabama Jobs Act provides incentives on a “pay as you” basis. This means incentives are provided only after the new jobs have been created and Alabama has begun to receive the economic benefit.

“This Act puts Alabama in the forefront of job creation and means that companies have a strong incentive to start new jobs projects right here in Alabama,” said Senator Williams. “It will help us attract new companies to our state and combined with other related bills, mean that companies already here are likely to keep their new projects in the state.”

The Alabama Jobs Act will incentivize new jobs by providing a jobs credit of 3% of the previous year’s wages to new employees for a period of 10 years; the credit can be claimed as a cash rebate or tax credit. The Act also incentivizes investment by creating a 1.5% credit for a company’s investment in construction, equipment or development of an eligible project that creates new jobs. To qualify for both the 3% jobs credit and the 1.5% investment credit, the project in question must create at least 50 new jobs.

“I and my Senate Republican colleagues are committed to creating a healthy, pro-business climate in our state,” remarked Senator Williams. “This Act will mean more jobs for Alabamians, and I am proud to sponsor this incentives package.”

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Senator Phil Williams represents District 10 in the Alabama State Senate, which is comprised of all or parts of Etowah, Cherokee, St. Clair, and DeKalb counties.

Follow him on Facebook at facebook.com/Phil.Williams.14 or on Twitter for his latest legislative updates: @SenPhilWilliams