This amendment creates a new law called the TRAIN Act that lets businesses send their experienced workers to teach career classes in schools and gives those companies tax breaks for doing so.
Alabama2026Enacted
HB517
Talent Readiness and Industry Needs (TRAIN) Act
Last scannedAug 24, 2026, 9:06 AM
In one sentence
This law creates tax credits for employers who loan qualified workers to teach career classes or donate money to support those programs, while establishing a new teaching certificate for industry professionals.
What it does
- Creates state income and financial institution excise tax credits for eligible employers from January 1, 2027, through December 31, 2031.
- Allows the credit amount to equal an employee's salary paid during teaching time or donations made to community development foundations supporting career technical education programs.
- Establishes a workforce teaching certificate that allows qualified employees to teach designated career and technical education courses at eligible institutions.
- Requires employers and schools to sign agreements outlining terms for loaning employees as instructors, including confirming the employer will pay full salary during the assignment.
- Sets annual limits on total tax credits available statewide ($10 million), donation-specific credits ($4 million), and individual taxpayer claims.
Who it affects
- Employers registered in Alabama who pay state income or financial institution excise taxes.
- Qualified employees with industry experience, a bachelor's degree (or equivalent), at least three years of relevant experience, positive performance reviews, and clean background checks.
- Eligible educational institutions including public high schools, community colleges, local education agencies, and community development foundations.
Limits and unknowns
- The total tax credits available statewide cannot exceed $10 million per year, with donation-related credits limited to $4 million annually.
- Individual taxpayers can claim no more than $250,000 or 50 percent of their tax liability in credits each year.
- Specific rules for administering the program will be created later by state departments.
Plain language
Terms to know
- Qualified Employee
- A worker with a bachelor's degree or equivalent experience who has at least three years in their field, positive performance reviews, and passes background checks to teach career classes.
- Designated CTE Program
- A career and technical education course for grade 9 or higher that focuses on high-demand sectors approved annually by the Alabama Workforce Board.
- Workforce Teaching Certificate
- A temporary permit issued by the Department of Education allowing a qualified employee to teach specific career classes in schools, which may be renewable.
Official record
Sources
Official summary
This act is the Talent Readiness and Industry Needs (TRAIN) Act. This act: (1) establishes state income and financial institution excise tax credits, beginning January 1, 2027, and ending December 31, 2031, for employers that loan qualified career technical education (CTE) employees to teach at eligible educational institutions, equal to an employee's salary payments or donations to community development foundations that support a CTE program or an instructor's salary; (2) sets an aggregate $10 million annual limit on statewide credits, limits donation credits to $4 million annually, and limits individual taxpayer credits to $250,000 annually or not more than 50 percent of tax liability; (3) conditions employers receiving a tax credit on satisfying certain criteria, including employers and eligible educational institutions entering into memorandums of understanding containing specified terms and employers receiving a TRAIN Act credit reservation certificate from the Department of Education; (4) authorizes the Departments of Education, Revenue, and Workforce to adopt rules to administer and enforce this act; (5) requires the Department of Education to annually report to the Legislature information on this tax credit; and (6) establishes and provides a process to obtain a workforce teaching certificate from the Department of Education authorizing employees to teach designated career and technical education programs at eligible educational institutions.
Official activity
Bill history
- EnactedHouse
- Lomax motion to Concur In and Adopt Senate Amendment - Adopted Roll Call 1343 (Yeas 105, Nays 0)House
- Delivered to GovernorHouse
- Signature RequestedSenate
- EnrolledHouse
- Ready to EnrollHouse
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1256 (Yeas 33, Nays 0)Senate
- Elliott motion to Adopt - Adopted Roll Call 1255 (Yeas 32, Nays 0)Senate
- Elliott motion to Adopt - Adopted Roll Call 1254 (Yeas 32, Nays 0)Senate
- Elliott motion to Adopt - Adopted Roll Call 1253 (Yeas 32, Nays 0)Senate
- Third Reading in Second House (Yeas 32, Nays 0)Senate
- Elliott 1st Amendment OfferedSenate
- Finance and Taxation Education 1st Amendment OfferedSenate
- Finance and Taxation Education 2nd Amendment OfferedSenate
- Read for the Second Time and placed on the CalendarSenate
- Reported Out of Committee Second HouseSenate
- Finance and Taxation Education 2nd AmendmentSenate
- Finance and Taxation Education 1st AmendmentSenate
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 747 (Yeas 104, Nays 0)House
- Motion to Adopt - Adopted Roll Call 746 (Yeas 103, Nays 0)House
Changes
Amendments
5 stored
This amendment protects qualified employees who teach career and technical education classes from being personally sued for mistakes made while doing their job, unless they acted on purpose to cause harm.
This amendment adds a new type of organization called a 'community development foundation' to the list of groups that can receive tax credits for supporting career and technical education programs.
This amendment changes the bill's language to specify that tax credits will be given as state income and financial institution excise taxes.
This amendment changes the rules for how tax credits are calculated and what proof taxpayers must provide to claim them.