HB185 Alabama 2021 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2021

Title

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

Summary

HB185 would allow Alabama-resident active-duty military members stationed outside Alabama to deduct their active-duty pay and allowances from Alabama income taxes, with annual residence verification.

What This Bill Does

If enacted, eligible Alabama residents on active duty stationed outside Alabama could deduct their active-duty pay and allowances on their Alabama income tax return, for pay that wouldn’t already be deductible. The deduction would not apply to pay and allowances earned while the service member is stationed in Alabama. Service members must certify their current residence status each year to the Department of Revenue, which would adopt rules to enforce the act.

Who It Affects

• Active-duty military members who are Alabama residents stationed outside Alabama, who would be able to deduct their active-duty pay and allowances on their Alabama tax return.
• The Alabama Department of Revenue, which would collect annual residence certifications and establish enforcement rules for the deduction.

Key Provisions

• Establishes a deduction on the Alabama individual income tax return for active-duty military pay and allowances of Alabama residents stationed outside the state, excluding pay earned while stationed in Alabama.
• Requires annual certification of residence status to the Department of Revenue and directs the Department to adopt rules for enforcing the act; effective for taxable years beginning after December 31, 2020.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department