AlabamaEmployers may loan workers to teach career classes
Beginning October 1, 2026, employers may loan qualified workers to approved schools for career teaching and seek limited tax credits beginning January 1, 2027.
What it does
Employers may receive limited tax credits for loaning qualified workers to approved career programs or making certain donations, if they meet agreement, pay, and approval rules.
Qualified industry workers may receive a temporary teaching certificate after screening and training, allowing them to teach career classes while their employers keep paying them.
Argument forSchools could gain instructors with current industry experience, giving students more direct training for manufacturing, technology, construction, and other careers.
Argument againstStrict approval rules, salary requirements, credit caps, and possible credit recapture could discourage smaller employers from participating.
More detail
Employers may claim a limited state tax credit for loaning qualified employees to teach approved career and technical education programs or for certain donations. The program covers Alabama employers, qualified employees, eligible schools and colleges, public high schools, local education agencies, and qualifying community development foundations. The employer must have an approved agreement, a credit reservation certificate, and must continue paying the employee's full salary and benefits. The employee must meet education or experience standards, pass background checks, and meet the school's screening rules. The credit generally equals the employee's salary for teaching time, or an eligible donation, subject to statutory limits. A taxpayer's credit may not reduce its tax liability by more than 50 percent, and unused credits may carry forward for up to five years but may not be transferred. Tax credits may be claimed beginning January 1, 2027, and agreements generally must be approved by December 31, 2031, unless the Legislature extends that date.
The State Department of Education may issue a workforce teaching certificate allowing a qualified private-sector employee to teach an approved career program while remaining employed and paid by the employer. The certificate applies to qualified employees teaching designated career and technical education programs at eligible Alabama educational institutions. The employee must pass a background check, receive department clearance, and complete and pass the department's online training before teaching. The certificate may allow classroom teaching, recordkeeping, grading, and other duties approved or assigned by the educational institution. The department may end the certificate for cause, and the school may end the employer agreement for specified performance or compliance problems. The employee is generally protected from personal liability for assigned duties, except for willful, wanton, or intentional misconduct. The act takes effect October 1, 2026; the department sets the certificate's term and renewal process.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17EnactedBecame Law
- Apr 9Lomax motion to Concur In and Adopt Senate Amendment - Adopted Roll Call 1343Major
- Vote recorded Lomax motion to Concur In and Adopt Senate Amendment - Adopted Roll Call 1343. Result: pass.Lower
- Apr 9Ready to Enroll
- Apr 9EnrolledTo Governor
- Apr 9Signature Requested
- Apr 9Delivered to GovernorMinor
- Apr 8Third Reading in Second House
- Vote recorded Third Reading in Second House. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1256. Result: pass.Upper
- Vote recorded Elliott motion to Adopt - Adopted Roll Call 1254. Result: pass.Upper
- Vote recorded Elliott motion to Adopt - Adopted Roll Call 1255. Result: pass.Upper
- Vote recorded Elliott motion to Adopt - Adopted Roll Call 1253. Result: pass.Upper
- Apr 8Finance and Taxation Education 2nd Amendment Offered (Finance and Taxation Education)Minor
- Apr 8Finance and Taxation Education 1st Amendment Offered (Finance and Taxation Education)Minor
- Apr 8Elliott motion to Adopt - Adopted Roll Call 1253Major
- Apr 8Elliott motion to Adopt - Adopted Roll Call 1254Major
- Apr 8Elliott 1st Amendment OfferedMinor
- Apr 8Elliott motion to Adopt - Adopted Roll Call 1255Major
- Apr 8Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1256Passed Senate
- Apr 1Finance and Taxation Education 1st Amendment (Finance and Taxation Education)
- Apr 1Finance and Taxation Education 2nd Amendment (Finance and Taxation Education)
- Apr 1Reported Out of Committee Second House
- Apr 1Read for the Second Time and placed on the Calendar (Finance and Taxation Education)Minor
- Mar 5Third Reading in House of Origin
- Vote recorded Motion to Adopt - Adopted Roll Call 745. Result: pass.Lower
- Vote recorded Third Reading in House of Origin. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 747. Result: pass.Lower
- Vote recorded Motion to Adopt - Adopted Roll Call 746. Result: pass.Lower
- Mar 5Ways and Means Education 1st Substitute Offered (Ways and Means Education)Minor
- Mar 5Motion to Adopt - Adopted Roll Call 745Major
- Mar 5Lomax 1st Amendment OfferedMinor
- Mar 5Motion to Adopt - Adopted Roll Call 746Major
- Mar 5Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 747Passed House
- Mar 5Engrossed
- Mar 5Read for the first time and referred to the Senate Committee on Finance and Taxation EducationMinor
- Mar 5Pending Committee Action in Second House (Finance and Taxation Education)
- Mar 3Ways and Means Education 1st Substitute (Ways and Means Education)
- Mar 3Reported Out of Committee House of Origin
- Mar 3Read for the Second Time and placed on the Calendar (Ways and Means Education)Minor
- Feb 26Read for the first time and referred to the House Committee on Ways and Means EducationMinor
- Feb 26Pending Committee Action in House of Origin (Ways and Means Education)Introduced
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