HB233 Alabama 2017 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2017

Title

Taxation, provide income tax deduction, military stationed out of state

Summary

HB233 would let Alabama residents who are active-duty military and stationed outside Alabama deduct their active-duty pay and allowances on their Alabama income tax return.

What This Bill Does

If passed, the bill provides an income tax deduction for active-duty military pay and allowances earned by Alabama residents stationed outside the state and not already deductible under current rules. The deduction cannot be claimed for pay and allowances while the service member is stationed in Alabama. To claim the deduction, the service member must annually certify their residence status to the Alabama Department of Revenue, which would also publish rules to enforce the deduction. The law would take effect for tax years beginning after December 31, 2018.

Who It Affects

• Alabama resident active-duty military personnel stationed outside Alabama who would be eligible to deduct their pay and allowances on their Alabama tax return.
• Alabama resident active-duty military personnel stationed inside Alabama who would not be eligible for the deduction (the deduction applies only to pay while stationed outside the state).

Key Provisions

• Creates a new deduction on the Alabama individual income tax return for active-duty military pay and allowances earned while stationed outside Alabama that is not already deductible under current law.
• The deduction cannot be claimed for military pay and allowances when the service member is stationed in Alabama.
• Requires annual certification of residence status to claim the deduction, submitted to the Department of Revenue.
• The Department of Revenue must promulgate rules necessary to enforce the deduction.
• The act becomes effective for taxable years beginning after December 31, 2018, and may repeal conflicting laws.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department