Income Tax; to exempt compensation earned by a student athlete for the use of their name, image, or likeness from income tax

HB 240 exempts student athletes at Alabama's public universities (excluding community colleges) from paying state income tax on compensation earned from using their name, image, or likeness (NIL). This applies to income already included in federal tax filings, removing a state tax burden on NIL deals. The exemption covers tax years starting January 1, 2025, through December 31, 2027, with retroactive application. It directly affects student athletes at eligible public institutions who earn NIL income, changing how that specific income is taxed under Alabama law.