AL HB249

Extends the sunset date for Alabama's income tax deduction for contributions to Achieving a Better Life Experience (ABLE) savings accounts from December 31, 2025 to December 31, 2030.

Allows individual taxpayers to deduct up to $5,000 per year in contributions made to an Alabama ABLE savings account, regardless of whether they itemize deductions.

Requires nonqualified withdrawals to be added back to the taxpayer's income plus an additional 10 percent penalty in the year the withdrawal is distributed.

Excludes rollover amounts from the deduction if an Alabama income tax deduction has already been claimed for those rollover contributions.

Becomes effective on October 1, 2024.