Alabama 2025 Regular Session

Alabama House Bill HB219 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB219INTRODUCED
2	2	Page 0
3	3	HB219
4	4	AP5T7S7-1
5	5	By Representative Pettus
6	6	RFD: Ways and Means Education
7	7	First Read: 06-Feb-25
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12	12	5 AP5T7S7-1 1/23/2025 JF (F)DJ 2024-3043
13	13	Page 1
14	14	First Read: 06-Feb-25
15	15	SYNOPSIS:
16	16	Under current law, certain compensation for
17	17	active service members of the United States Armed
18	18	Forces is not subject to state income tax.
19	19	This bill would expand this exemption to include
20	20	certain compensation of civilian employees of the U.S.
21	21	Department of Defense and Armed Forces.
22	22	A BILL
23	23	TO BE ENTITLED
24	24	AN ACT
25	25	Relating to income tax; to amend Section 40-18-3, Code
26	26	of Alabama 1975, as last amended by Act 2024-170 of the 2024
27	27	Regular Session, to exempt certain compensation of civilian
28	28	employees of the U.S. Department of Defense and Armed Forces
29	29	from state income tax.
30	30	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
31	31	Section 1. Section 40-18-3, Code of Alabama 1975, as
32	32	last amended by Act 2024-170 of the 2024 Regular Session, is
33	33	amended to read as follows:
34	34	"§40-18-3
35	35	(a) The salaries, fees, commissions, or other income of
36	36	officers or agents of the United States or its agencies and
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64	64	28 HB219 INTRODUCED
65	65	Page 2
66	66	officers or agents of the United States or its agencies and
67	67	instrumentalities or its contractees, received from the United
68	68	States or from its agencies and instrumentalities, shall be
69	69	subject to income taxes levied by the State of Alabama as
70	70	other income is taxed, but without discrimination, and only to
71	71	the same extent and in the same manner as other income is
72	72	taxed, insofar as the State of Alabama may be constitutionally
73	73	or legally authorized to tax such income ; provided, that .
74	74	(b) Notwithstanding subsection (a), money paid by the
75	75	United States to a personan individual as compensation as a
76	76	civilian employee of the U.S. Department of Defense or Armed
77	77	Forces, or for active service as a member of the Armed
78	78	Forcesarmed forces of the United States, including members of
79	79	the National Guard and Reserve components, shall not be
80	80	subject to income taxes levied by the State of Alabama, for
81	81	compensation earned while the individual is:
82	82	(1) Inin a combat zone designated by executive order of
83	83	the President of the United States ,;
84	84	(2)Deployeddeployed to locations outside the United
85	85	States,; or
86	86	(3)Activatedactivated by the Governor of the State of
87	87	Alabama or the President of the United States to support state
88	88	or federal response to emergencies within or outside of the
89	89	United States shall not be subject to income taxes levied by
90	90	the State of Alabama ."
91	91	Section 2. The provisions of this act apply to tax
92	92	years beginning on or after January 1, 2026.
93	93	Section 3. This act shall become effective on January
94	94	1, 2026.
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