For the purpose of this article, the following words and phrases shall have the following meanings:

(1) ALABAMA SMALL BUSINESS EMPLOYER. A business organization duly formed, organized, or qualified to do business in the state, with its headquarters or principal place of business in the state, and having 75 or fewer employees during the tax year in which the tax credit is claimed pursuant to this article, other than new employees for which a credit is allowed by this article.
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Terms Used In Alabama Code 40-18-391

  • following: means next after. See Alabama Code 1-1-1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
  • year: means a calendar year; but, whenever the word "year" is used in reference to any appropriations for the payment of money out of the treasury, it shall mean fiscal year. See Alabama Code 1-1-1
(2) DEPARTMENT. The Alabama Department of Revenue.
(3) NET EMPLOYEE GROWTH. An Alabama small business employer’s net increase in the total number of full-time employees residing in Alabama based on the following:

a. The total number of full-time Alabama employees on the last date of each tax year in which the employer is claiming a credit pursuant to this article; minus,
b. The total number of full-time Alabama employees on July 24, 2016.
(4) QUALIFIED NEW EMPLOYEE. A new employee of an Alabama small business employer that, for a qualifying time period of 12 consecutive months, satisfies all of the following criteria:

a. Was employed on a full-time basis.
b. Was an Alabama resident.
c. Received wages from the Alabama small business employer that met or exceeded a total of forty thousand dollars ($40,000).
d. Was not a full-time employee of the Alabama small business employer during any time 12 months prior to the start of such qualifying time period.
(5) WAGES. Total wages paid to an employee, including gross wages, salaries, overtime, and bonuses.
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