House Bill 341 Alabama 2026 Session

Summary

Primary Sponsor

Jerry StarnesRepresentative

Republican

Session

2026 Regular Session

Title

Income tax, to exempt certain income earned by members of the Alabama National Guard

Summary

HB341 would exempt the first $5,000 of National Guard drill pay from Alabama state income tax, begin a separate $5,000 IDT exemption in 2027, and include non-substantive updates to the tax code.

What This Bill Does

It adds two exemptions to the state income tax: up to $5,000 of drill pay for Alabama National Guard members would be exempt from state income tax; and beginning January 1, 2027, up to $5,000 of inactive duty training (IDT) income would also be exempt (as described in 37 U.S.C. § 206). The bill also makes nonsubstantive, technical revisions to update the existing code language to current style. The act would become effective October 1, 2026, with the IDT exemption taking effect in 2027.

Who It Affects

• Alabama National Guard members — would see up to $5,000 of their drill pay, and starting in 2027 up to $5,000 of IDT pay, shielded from Alabama state income tax.
• Alabama Department of Revenue and state tax administrators — would implement the new exemptions and update rules/forms to reflect the changes.

Key Provisions

• Exempts the first $5,000 of taxable income earned from drill pay by Alabama National Guard members from Alabama state income tax.
• Beginning January 1, 2027, exempts the first $5,000 of income received by Alabama National Guard members for inactive duty training (IDT) from Alabama state income tax (as described in 37 U.S.C. § 206).

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue