SB 414

Under existing law, active duty members of the United States Marine Corps, Navy, Air Force, Army, Coast Guard, or Alabama National Guard do not have an option for deducting their active duty military pay and allowances on their Alabama individual income tax returns while stationed outside of the State of Alabama

This bill would grant a deduction to active duty members of the U.S. Armed Forces on the Alabama individual income tax return for active duty military pay and allowances

This bill also would require the service member to certify annually to the Department of Revenue his or her current residence status and would require the Department of Revenue to promulgate rules necessary for the enforcement of this act

To provide for a deduction on the Alabama individual income tax return for active duty military pay and allowances for residents stationed out of the state; and to require the Department of Revenue to promulgate rules.

Section 1

(a) Active duty Alabama residents not currently residing in the state may deduct military pay and allowances received by them during the taxable year for active duty service in the United States Marine Corps, Navy, Air Force, Army, Coast Guard, or Alabama National Guard which is not otherwise allowable as a deduction or exclusion from Alabama adjusted gross income for the taxable year. The deduction may not be claimed for military pay and allowances received by the taxpayer while the taxpayer is stationed in this state. (b) The taxpayer shall certify annually his or her residence status in order to claim this deduction on forms provided by the Department of Revenue.

Section 2

The Department of Revenue shall promulgate rules necessary for the enforcement of this act.

Section 3

This act shall become effective for the taxable years beginning after December 31, 2019, and following its passage and approval by the Governor, or upon its otherwise becoming law.