SB414 Alabama 2019 Session

Summary

Primary Sponsor

Donnie ChesteenSenator

Republican

Session

Regular Session 2019

Title

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

Summary

SB 414 would allow Alabama residents who are active duty military stationed outside Alabama to deduct their active duty pay and allowances on their Alabama tax returns, with residency certification and Department of Revenue rules.

What This Bill Does

The bill creates a new deduction on the Alabama individual income tax return for active duty military pay and allowances earned while the service member is outside Alabama. It cannot be used for pay and allowances earned while stationed in Alabama. Members must annually certify their residence status to claim the deduction, using forms provided by the Department of Revenue, which would also establish enforcement rules. The deduction would apply starting with tax years after December 31, 2019.

Who It Affects

• Active duty U.S. Armed Forces members who are Alabama residents and are stationed outside Alabama; they could deduct their eligible pay and allowances not already deductible or excluded from Alabama AGI.
• Alabama Department of Revenue; would implement and enforce the new deduction through 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 not allowed for pay and allowances received while the taxpayer is stationed in Alabama.
• Requires annual certification of residence status to claim the deduction, using forms provided by the Department of Revenue.
• 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