MONTGOMERY, AL (WSFA) - Governor Robert Bentley announced Wednesday his support for a bill that would offer a major tax incentive for businesses considering locating to Alabama.
"What we're using is the income taxes of full-time employees to be offered back to the companies as they recoup moneys that they put into these projects" Bentley said.
The bill would give companies the opportunity to keep the income taxes of its employees to be used for their own costs having to do with relocating or conducting business in Alabama.
"I truly believe this is the bill that will create jobs in Alabama" said Sen. Phil Williams (R – Etowah) who is sponsoring the legislation in the Alabama Senate.
Rep. Barry Mask (R – Wetumpka) is sponsoring the proposal in the House of Representatives.
Several Democrats did join with Governor Bentley during his announce. For House Speaker Seth Hammett, who is now Director of the Alabama Development Office, explained that the onus is on the State Industrial Development Authority (SIDA) to approve a company for the tax break. Currently, Alabama law provides for companies withholding no more than 5% of its employees state income taxes. If this proposal becomes law, it would allow companies to negotiate up to 90% of their employees income taxes being withheld.
Hammett noted that the state doesn't lose any money on the transaction.
"You can't lose money you didn't have" Hammett remarked.
If the bill becomes law, then it would be enacted for the foreseeable future.