The bill amends Section 40-18-14 of the Code of Alabama 1975 to introduce new exclusions from gross income for individual taxpayers. Specifically, it adds provisions to exclude amounts paid by an employer towards a Trump Account and amounts paid for qualified education loans from an employee's gross income, effective for tax years beginning on or after January 1, 2026. The bill also makes the exclusion for employer contributions to qualified education loans permanent, ensuring that these amounts are not subject to state income tax.

Additionally, the bill includes a deletion of certain existing language related to gross income definitions and exemptions, streamlining the tax code to accommodate these new exclusions. The act is set to take effect on May 1, 2026, and aims to provide tax relief for individuals benefiting from employer contributions to education loans and Trump Accounts.

Statutes affected:
Introduced: 40-18-14, 40-18-14
Enrolled: 40-18-14, 40-18-14