HB 63 Summary

• Amends Section 40-18-19 of the Alabama Code to add a new exemption for income from defined contribution deferred compensation plans.

• Beginning January 1, 2016, 90 percent of income received as a benefit from a defined contribution deferred compensation plan is exempt from Alabama state income taxation.

• The remaining 10 percent of such income remains subject to state income tax.

• The exemption applies to individual resident taxpayers and nonresident taxpayers on a proportional basis based on Alabama-source income.

• The bill becomes effective immediately upon passage and approval by the Governor.