HB91 Summary

• Amends Section 40-18-19 of the Code of Alabama 1975 to add a new income tax exemption for defined contribution deferred compensation plans, effective January 1, 2016.

• Exempts 90 percent of income received as benefits from defined contribution deferred compensation plans, capped at $50,000 annually, from Alabama state income taxation.

• Applies the exemption to individual resident taxpayers with corresponding proportional exemptions for nonresident individual taxpayers based on their Alabama-source income.

• Takes effect immediately upon passage and approval by the Governor, or upon otherwise becoming law.