Loading chat...
AL HB250
Bill
Status
1/15/2026
Primary Sponsor
Danny Garrett
Click for details
AI Summary
-
Excludes employer contributions to Trump Accounts (education savings accounts under 26 U.S.C. § 530A) from Alabama state gross income for individual taxpayers, effective for tax years beginning January 1, 2026
-
Makes permanent the state income tax exclusion for employer payments on employees' qualified education loans, which was previously a temporary/expiring provision under federal law
-
Aligns Alabama tax treatment with federal provisions in the "One, Big, Beautiful Bill Act" (Pub. L. 119-21), specifically sections 70204 (Trump Accounts) and 70412 (education loan payments)
-
Amends Section 40-18-14 of the Code of Alabama 1975, which defines gross income for state income tax purposes
-
Effective date: May 1, 2026
Legislative Description
Individual income taxes, to allow an exclusion from gross income for contributions to Trump Accounts and to make permanent the exclusion for amounts paid by an employer on any qualified education loan.
Taxation & Revenue
Last Action
Read for the Second Time and placed on the Calendar
2/25/2026