HB 388 Alabama House · 2025 Regular Session

Income tax, exemption for taxable retirement income increased

House Bill 388 proposes to increase the income tax exemption for certain individuals in Alabama. Specifically, it would raise the amount of taxable retirement income exempt from state income taxes for individuals aged 65 or older. The bill increases this exemption from the current $6,000 to $12,000. This change directly affects older Alabamians receiving taxable retirement income.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

Apr 2025

House Passage

Mar 2025

Senate Passage

Governor

Introduced Mar 5, 2025 Last action May 1, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Finance and Taxation Education 1st Substitute · 4 edits

MODERATE

This bill amends HB388 to change the retirement income tax exemption from an immediate increase to a phased-in increase over three years, and includes technical corrections to formatting and definitions throughout the document.

Scope change

The bill's scope remains focused on Alabama income tax exemptions for retirement income, but the implementation timeline for the exemption increase has been modified.

TIMELINE

The retirement income tax exemption increase from $6,000 to $12,000 is now phased in over a three-year period instead of taking effect immediately.

SCOPE

The bill's purpose statement was updated to reflect the phased implementation of the retirement income exemption increase.

TECHNICAL

Several formatting and typographical corrections were made throughout the document, including fixing inconsistent spacing and correcting references to legal sections.

The bill header was updated to reflect the substitute version number and date.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 30, 2025

Upper · Passed

Reported Out of Committee Second House

upper

Apr 24, 2025

Upper · Passed

Pending Committee Action in Second House (Finance and Taxation Education)

upper

Mar 18, 2025

Lower · Passed

Motion to Add Cosponsor - Adopted Roll Call 418

lower

Mar 18, 2025

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 417

lower

Mar 6, 2025

Lower · Passed

Reported Out of Committee House of Origin

lower

Mar 5, 2025

Lower · Passed

Pending Committee Action in House of Origin (Ways and Means Education)

lower

1 primary · 0 co-sponsors