AL SB209

Amends Section 40-18-3 of the Alabama Code to expand the state income tax exemption for military compensation to include National Guard and Reserve members.

Exempts from Alabama state income tax compensation paid to armed forces members serving in a combat zone designated by the President, deployed outside the United States, or activated by the Governor or President to support emergency response.

Applies the tax exemption to active service compensation received from the United States government for covered deployments and activations.

Effective January 1, 2025.