AL HB240

Exempts compensation earned by student athletes for use of their name, image, or likeness from Alabama state income tax, provided such income is included in federal adjusted gross income.

Applies to student athletes who play intercollegiate sports at public universities, colleges, and higher education institutions in Alabama, excluding Alabama Community College System institutions.

Tax exemption applies retroactively to tax years beginning January 1, 2025 through December 31, 2027.

Defines "name, image, or likeness" as elements collectively known as the right of publicity.

Becomes effective October 1, 2025.