Senate passes industry-to-classroom workforce tax credit bill

The Alabama Senate on Tuesday passed a workforce development measure designed to address shortages in career and technical education by creating a new tax credit program to bring industry professionals into classrooms as instructors.

House Bill 517, sponsored by Representative James Lomax, R-Huntsville, or the Talent Readiness and Industry Needs Act, establishes a targeted incentive to allow private employers to “loan” skilled workers to public schools and community colleges to teach in designated CTE programs. The bill was carried on the Senate floor by Senator Chris Elliott, R-Josephine.

“This bill is very much a response to two groups,” said Elliott. “It’s a response, certainly, to our education friends… and it’s a response to our industry partners… saying, ‘We don’t have a qualified workforce, and we’d love to loan you somebody, but we can’t afford to.’”

Under the legislation, employers can receive a tax credit for continuing to pay the salary of an employee who is temporarily assigned to teach in an eligible CTE program. The statewide cap on the credit is $10 million annually, drawn from the Education Trust Fund. The maximum credit per employer is $250,000.

The bill also includes a committee amendment allowing up to $4 million of the annual cap to be directed through qualifying community development foundations, Alabama-based 501(c)(3) nonprofits that focus on workforce training and CTE programming. These foundations may receive donations from employers and subsidize compensation for qualified instructors.

Elliott described the amendment as a way to make the program more flexible and responsive to local workforce needs.

“That lets industry… take the tax credit, use the tax credit, give the money to the community development foundation, and direct, if you will, and say, ‘Hey, I need more welders,’ or ‘focus on HVAC and mechanical,’” said Elliott.

HB517 also creates a new “workforce teaching certificate,” a temporary teaching credential issued by the Alabama Department of Education to qualifying professionals. To be eligible, an instructor must possess either a bachelor’s degree or other certification, or a combination of education and experience deemed equivalent by the department. They must also have at least three years of occupational experience or industry-recognized certification in the relevant field, a history of positive performance reviews and pass a criminal background check.

The teaching assignment must include at least 300 hours of direct instruction per academic year, unless adjusted by the department.

Supporters said the bill is intended to get skilled tradespeople into classrooms earlier, exposing students to career pathways before graduation.

During the debate, lawmakers discussed how the program would interact with Alabama’s existing dual enrollment offerings, which allow high school students to take courses at community colleges. 

Senator Vivian Figures, D-Mobile, raised concerns about whether additional Education Trust Fund dollars were necessary when dual enrollment programs already exist.

“I just don’t see us spending additional Education Trust Fund money if we don’t have to, when it’s already being offered at a much, much lower price,” said Figures.

Senator Robert Stewart, D-Selma, questioned whether subject-matter experts would be prepared to manage classrooms, noting that teaching requires specific pedagogical skills.

“Everybody who has expertise doesn’t have those teaching skills,” said Stewart. “That’s just a fact.”

Elliott acknowledged the concern but said the bill includes safeguards.

“We’re going to watch you and see, ‘Hey, what’s the outcomes? Are you able to teach?’ Because not everybody is, admittedly, but are you getting it done? And if so, we’re going to extend this certificate,” said Elliott.

The legislation also requires oversight from the Alabama Department of Revenue, which must approve credit reservations, track usage against annual caps and require documentation, including proof of salary payments or donations to community development foundations.

Highlighting another benefit of the proposal, Elliott said the bill could also create a pathway for veteran tradespeople nearing retirement to transition out of physically demanding work and into the classroom.

“Somebody that’s slowing down a little bit, towards the end of their career, wants to impart this knowledge, if you will, onto our youth, but they have a little bit of arthritis. They don’t necessarily need to be in the field as much. And so they’re able to transfer, if you will, to get into a spot where they’re better able to help impart that knowledge on the kid,” said Elliott.

He added that exposing students to successful tradespeople can provide both practical skills and inspiration.

“Showing the success to a kid… demonstrating that you can be successful in doing this type of work, and showing that you can get ahead — and, oh, by the way, get ahead immediately — is so valuable,” said Elliott.

HB517 takes effect October 1, 2026, and does not include a sunset provision.