HB228 Summary

• Exempts the first $5,000 of income earned by Alabama National Guard members from inactive duty training (IDT) from state income tax, effective January 1, 2026.

• Amends Section 40-18-19 of the Code of Alabama 1975 to add a new subsection (14) creating the exemption for IDT pay as described in 37 U.S.C. § 206.

• The exemption applies only to income received as payment for inactive duty training and does not affect other income sources.

• The Department of Revenue is authorized to enact rules necessary to implement and administer this exemption.

• The act becomes effective on October 1, 2025.