SB209 Alabama 2024 Session

Summary

Primary Sponsor

Andrew JonesSenator

Republican

Session

Regular Session 2024

Title

National guard and reserve; state income tax exemption

Summary

Alabama expands its state income tax exemption to cover certain pay for National Guard and Reserve members when deployed overseas or activated to assist in emergencies, with the change taking effect January 1, 2025.

What This Bill Does

The bill extends the existing exemption for active-duty combat-zone pay to include compensation paid to National Guard and Reserve members in the specified situations. It applies to pay the United States provides for active service, including combat zones, deployments outside the United States, or activations to support state or federal emergency responses. The exemption would apply for the calendar year 1965 and every year after, and the new provision becomes effective on January 1, 2025.

Who It Affects

• National Guard and Reserve members who are deployed outside the United States or activated to support emergencies, whose compensation would be exempt from Alabama state income tax.
• Alabama employers, payroll offices, and the Alabama Department of Revenue responsible for applying and administering the exemption for eligible military pay.

Key Provisions

• Expands the Alabama state income tax exemption to include certain compensation for National Guard and Reserve members and those activated to support emergencies, whether domestically or internationally.
• Specifies that compensation paid by the United States for active service in a combat zone, or for deployments/activations related to emergencies, shall not be subject to Alabama income taxes for the calendar year 1965 or any later year.
• 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