HB623 Alabama 2019 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2019

Title

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

Summary

The bill would let Alabama resident active-duty military members stationed outside Alabama deduct their active-duty pay and allowances on Alabama income taxes.

What This Bill Does

If enacted, eligible active-duty service members could deduct their military pay and allowances that aren’t otherwise deductible from their Alabama tax return. The deduction would not apply to pay earned while the member is stationed in Alabama. Members would have to annually certify their current residence status. The Department of Revenue would create rules to enforce the deduction.

Who It Affects

• Active-duty Alabama residents who are stationed outside Alabama would be able to deduct their active-duty pay and allowances (not already deductible) from their Alabama adjusted gross income.
• Alabama Department of Revenue and tax filers would be involved in administering and enforcing the deduction through annual residence certifications and promulgated rules.

Key Provisions

• Creates a deduction on the Alabama individual income tax return for active-duty military pay and allowances for residents stationed outside the state.
• Deduction cannot be claimed for pay and allowances received while stationed in Alabama.
• Requires annual certification of the taxpayer's residence status to claim the deduction.
• Department of Revenue must promulgate rules necessary for enforcement of the act.
• Effective for taxable years beginning after December 31, 2019.

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