AL SB225

Exempts the first $5,000 of inactive duty training (drill pay) earned by Alabama National Guard members from state income tax, effective January 1, 2027

Amends Section 40-18-19 of the Code of Alabama 1975, which governs state income tax exemptions for individual resident taxpayers

The exemption specifically applies to income received as payment for inactive duty training (IDT) as described in federal law (37 U.S.C. § 206)

Authorizes the Department of Revenue to enact rules necessary to implement and administer the exemption

Act becomes effective October 1, 2026, with the tax exemption applying to tax years beginning January 1, 2027