Bill > SB225

This bill amends Alabama law to exempt the first five thousand dollars ($5,000) of income received by members of the Alabama National Guard from inactive duty training (IDT), as defined by federal law (37 U.S.C. § 206), from state income tax, beginning January 1, 2027. This exemption is added to a list of existing income tax exemptions for Alabama residents, which include various retirement benefits, income from specific savings accounts like PACT and ACES, ABLE savings accounts for individuals with disabilities, certain foreign income, and retirement income for individuals aged 65 and older. The bill also makes minor technical changes to the wording of existing provisions regarding personal exemptions for non-resident taxpayers and the definition of "act" versus "section" in the Department of Revenue's rulemaking authority. The legislation is set to become effective on October 1, 2026.

Budget and Finance

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