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AlabamaHB2502026 Regular SessionHouseWALLET

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.

Sponsored By: Danny Garrett (Republican)

Enacted

Taxation & Revenue

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Workers get tax breaks for employer-paid loans

For tax years beginning January 1, 2026, or later, Alabama excludes qualifying employer-paid education loan payments from workers’ gross income. This covers principal or interest paid to the employee or directly to the lender. Only payments excluded from the employee’s federal gross income qualify. The exclusion is permanent. The law takes effect May 1, 2026.

Workers get tax breaks for Trump Accounts

For tax years beginning January 1, 2026, or later, Alabama excludes qualifying employer contributions to Trump Accounts from workers’ gross income. Contributions can go to the employee’s account or a dependent’s account. Only contributions excluded from the employee’s federal gross income qualify. The law takes effect May 1, 2026.

Sponsors & Cosponsors

Sponsor

  • Danny Garrett

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 243 • No: 6

Senate vote • 4/7/2026

Third Reading in Second House

Yes: 34 • No: 0

Senate vote • 4/7/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 1219

Yes: 26 • No: 6

House vote • 2/12/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 395

Yes: 85 • No: 0 • Other: 18

House vote • 2/12/2026

Third Reading in House of Origin

Yes: 98 • No: 0 • Other: 5

Actions Timeline

  1. Enacted

    4/17/2026House

  2. Signature Requested

    4/8/2026Senate

  3. Delivered to Governor

    4/8/2026House

  4. Third Reading in Second House

    4/7/2026Senate

  5. Motion to Read a Third Time and Pass - Adopted Roll Call 1219

    4/7/2026Senate

  6. Ready to Enroll

    4/7/2026House

  7. Enrolled

    4/7/2026House

  8. Reported Out of Committee Second House

    2/25/2026Senate

  9. Read for the Second Time and placed on the Calendar

    2/25/2026Senate

  10. Third Reading in House of Origin

    2/12/2026House

  11. Motion to Read a Third Time and Pass - Adopted Roll Call 395

    2/12/2026House

  12. Read for the first time and referred to the Senate Committee on Finance and Taxation Education

    2/12/2026Senate

  13. Pending Committee Action in Second House

    2/12/2026Senate

  14. Read for the Second Time and placed on the Calendar

    1/29/2026House

  15. Reported Out of Committee House of Origin

    1/28/2026House

  16. Read for the first time and referred to the House Committee on Ways and Means Education

    1/15/2026House

  17. Pending Committee Action in House of Origin

    1/15/2026House

Bill Text

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