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Tax break for traditional National Guard members gets committee approval amid education-fund concerns
Summary
House Bill 341 would exempt up to $5,000 of state income for traditional National Guard members; sponsor estimated costs of $1.9 million initially and $2.6 million annually thereafter. The committee adopted a sunset amendment and reported the bill favorably despite several senators expressing concern about the education trust fund impact.
Mr. Starns introduced House Bill 341 to exempt up to $5,000 of state income for traditional Alabama National Guard members who perform weekend drill and two weeks of annual training. The sponsor said the measure targets recruitment and retention and estimated an initial cost of $1.9 million (for the implementation year) and $2.6 million annually thereafter.
The committee adopted a sunset amendment. During questioning, Senator Smith and others pressed the sponsor on which states had similar tax incentives; the sponsor listed several states including South Carolina, Oklahoma, Pennsylvania, New York, Utah, Arizona and Nebraska. Senators raised objections that the exemption would reduce revenue available to the education trust fund and urged caution; one senator asked to be recorded as a 'no' vote for reasons tied to education funding.
The committee moved and seconded the bill. The roll indicated 'three nays, one abstention' during the vote, and the committee reported the bill favorably.
The committee flagged the fiscal impact in debate but did not adopt an alternative revenue offset in the hearing; the bill will proceed for additional consideration on the legislative calendar.
