HB379 Summary

• Amends Alabama income tax law to exempt nonresident individuals from state income tax on compensation for work performed in Alabama on 30 or fewer days per calendar year, provided they work in multiple states and their home state offers a similar exemption, has no income tax, or their income is exempt under U.S. Constitution or federal statute.

• Excludes professional athletes, professional entertainers, and public figures from the nonresident worker exemption.

• Requires employers to withhold and remit taxes retroactively for the entire calendar year (including the first 30 days) if an employee exceeds the 30-day threshold in Alabama.

• Provides tax exemption for nonresident workers performing disaster or emergency-related work in response to presidential or gubernatorial emergency declarations, with no withholding requirements.

• Permits employers to use time and attendance systems to track work locations or rely on employee determinations of expected work days, with penalties and interest waived for good-faith compliance efforts beginning in tax year 2026.