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Alabama2026Enacted

HB341

Alabama National Guard Income Tax Exemption

Last scannedAug 24, 2026, 9:06 AM

In one sentence

This law exempts the first $5,000 of taxable income earned by Alabama National Guard members from inactive duty training from state income tax for years between January 1, 2027, and December 31, 2029.

What it does

  • Amends Section 40-18-19 of the Code of Alabama to add a new exemption.
  • Exempts up to $5,000 of taxable income from state taxes for pay received as inactive duty training by National Guard members.
  • Applies only to tax years beginning between January 1, 2027, and December 31, 2029.

Who it affects

  • Members of the Alabama National Guard who receive pay for inactive duty training.

Limits and unknowns

  • The exemption applies only to income from inactive duty training, not other types of military pay.
  • Income earned above $5,000 from this specific type of training remains subject to state tax.

Official record

Sources

Validated

Official summary

This act amends Section 40-18-19, Code of Alabama 1975, to exempt from the state income tax the first $5,000 of taxable income received by a member of the Alabama National Guard as payment for inactive duty training, beginning January 1, 2027, through December 31, 2029 .

Official activity

Bill history

  1. EnactedHouse
  2. Signature RequestedSenate
  3. Delivered to GovernorHouse
  4. EnrolledHouse
  5. Starnes Motion to Concur In and Adopt Senate Amendment - Adopted Roll Call 1254 (Yeas 102, Nays 0)House
  6. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1209 (Yeas 34, Nays 0)Senate
  7. Jones motion to Adopt - Adopted Roll Call 1208 (Yeas 34, Nays 0)Senate
  8. Third Reading in Second House (Yeas 34, Nays 0)Senate
  9. Ready to EnrollHouse
  10. Finance and Taxation Education 1st Amendment OfferedSenate
  11. Read for the Second Time and placed on the CalendarSenate
  12. Reported Out of Committee Second HouseSenate
  13. Finance and Taxation Education 1st AmendmentSenate
  14. Motion to Read a Third Time and Pass - Adopted Roll Call 333 (Yeas 100, Nays 0)House
  15. Third Reading in House of Origin (Yeas 103, Nays 0)House
  16. Pending Committee Action in Second HouseSenate
  17. Read for the first time and referred to the Senate Committee on Finance and Taxation EducationSenate
  18. Read for the Second Time and placed on the CalendarHouse
  19. Reported Out of Committee House of OriginHouse
  20. Pending Committee Action in House of OriginHouse

Changes

Amendments

1 stored

V743JPV-1

This amendment changes a specific line in the bill to set up an income tax exemption for Alabama National Guard members starting January 1, 2027.