HB283 Alabama 2024 Session

Summary

Primary Sponsor

Kenneth PaschalRepresentative

Republican

Session

Regular Session 2024

Title

National guard and reserve; state income tax exemption

Summary

HB283 would expand Alabama's military pay tax exemption to cover National Guard and Reserve members' compensation when deployed outside the U.S. or activated for emergencies, making that pay tax-free at the state level.

What This Bill Does

It broadens the existing exemption from combat-zone pay to include certain National Guard and Reserve compensation. It applies when such members are deployed outside the United States or activated to support state or federal emergency responses, whether domestically or internationally. The bill amends Section 40-18-3 of the Alabama Code to formalize this exemption, which would apply to calendar year 1965 and any year thereafter, with the law taking effect January 1, 2025.

Who It Affects

• National Guard and Reserve members who are deployed outside the United States or activated to respond to emergencies (their compensation for active service would be exempt from Alabama state income tax).
• Alabama residents who receive compensation for active military service under these conditions (their state income tax liability would be reduced or eliminated for the affected pay).

Key Provisions

• Expands the current state income tax exemption to include compensation for National Guard and Reserve members who are deployed outside the United States or activated to support state or federal emergency responses.
• Specifies that compensation paid by the United States for active service in such circumstances shall be exempt from Alabama income taxes for calendar year 1965 and any subsequent year.
• Amends Section 40-18-3 of the Alabama Code to implement this exemption and its conditions.
• Effective date: January 1, 2025.

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

Subjects

Military; Taxation & Revenue