Senate Bill 79 Alabama 2026 Session

Updated Feb 12, 2026

Summary

Primary Sponsor: Dan RobertsSenator
Republican
Session: 2026 Regular Session
Title: Individual income taxes, to allow an exclusion from gross income for contributions to Trump Accounts and to make permanent the exclusion for amounts paid by an employer on any qualified education loan
Summary: SB79 would exclude employer contributions to Trump Accounts from Alabama gross income and permanently extend the exclusion for employer-paid education loan repayments.
What This Bill Does
If enacted, employer contributions to Trump Accounts would not be counted as gross income for Alabama individual taxpayers. The bill would permanently exclude amounts paid by an employer on qualified education loans from gross income, starting with tax years 2026 and later. It also adjusts how gross income is defined for Alabama residents and nonresidents to reflect these exclusions, and it becomes effective May 1, 2026. The Department of Revenue would be allowed to adopt rules to administer the new provisions.

Who It Affects
Employees who receive employer contributions to Trump Accounts (and their dependents) would have those contributions excluded from their Alabama gross income.
Employees who have employer-paid qualified education loan repayments (and their employers) would benefit from a permanent exclusion from gross income.

Key Provisions
Exclude from gross income employer contributions to Trump Accounts made on behalf of an employee or dependent.
Permanently exclude employer-paid amounts on qualified education loans from gross income for individual taxpayers, for tax years beginning in 2026 and later (referencing federal education loan exclusions).
Define gross income for Alabama tax purposes to reflect these exclusions and related provisions.
Effective date: May 1, 2026.
The Department of Revenue may adopt rules to administer the new section.

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