AL SB393

Exempts all payments made by the United States Department of Defense from Alabama income tax for members of the Armed Forces killed in action in a designated combat zone who were Alabama residents at the time of death, effective for the taxable year in which they are declared deceased.

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 service member is declared deceased.

Requires the Department of Revenue to refund any income taxes previously paid on income exempt under this act, with no statute of limitations restrictions on such refunds.

Makes the act retroactively effective to January 1, 2011, and provides that its provisions shall be liberally construed to accomplish its purpose.

Names the legislation the "Jason Barfield Act" in honor of a fallen service member.