HB 546 Summary

• Exempts payments made by the U.S. Department of Defense to members of the Armed Forces killed in action in a designated combat zone from Alabama income tax during the taxable year of death, provided the member was an Alabama resident at time of death.

• Exempts income earned by spouses of Armed Forces members killed in action in a designated combat zone from Alabama income tax during the taxable year the member is declared deceased.

• Requires the Department of Revenue to refund any income taxes previously paid on income now exempt under this act to the taxpayer or their personal representative.

• Waives the statute of limitations for tax refunds for taxpayers covered by this act and requires liberal construction of provisions to accomplish the act's purpose.

• Makes all provisions retroactively effective to January 1, 2011.