Alabama § 40-18-15.8 - Deductions for Contributions to Qualifying Alabama Achieving a Better Life Experience Savings Accounts.
Full text of Alabama Code of Alabama § 40-18-15.8 — Deductions for Contributions to Qualifying Alabama Achieving a Better Life Experience Savings Accounts., with citation guidance and answers to common questions.
§ 40-18-15.8. Deductions for Contributions to Qualifying Alabama Achieving a Better Life Experience Savings Accounts.
(a) An individual taxpayer shall be allowed a deduction from gross income, regardless of whether the taxpayer itemizes income tax deductions in calculating the income tax imposed pursuant to Section 40-18-5, for contributions made to an Alabama Achieving a Better Life Experience (ABLE) savings account, defined in Section 16-33C-3, as prescribed by this section.
(b) An individual taxpayer will be allowed to deduct contributions made on or after January 1, 2021, to an Alabama ABLE savings account, by or on behalf of such individual, of an amount up to five thousand dollars ($5,000) per annum. If the taxpayer makes a nonqualified withdrawal as defined by Section 529A of the Internal Revenue Code, 26 U.S.C. § 529A, the amount of the nonqualified withdrawal, plus 10 percent of the amount withdrawn, shall be added back to the income of the contributing taxpayer in the year the nonqualified withdrawal was distributed. Rollover amounts transferred to an Alabama ABLE savings account shall not be considered contributions for purposes of this deduction to the extent that an Alabama income tax deduction has already been claimed for the rollover contribution amounts.
(c) The Department of Revenue may adopt rules to assist with the administration of this section.
(d) The deduction allowed under this section may not be claimed for tax years that begin after December 31, 2030.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-18-15.8
What does Code of Alabama § 40-18-15.8 cover?
Section 40-18-15.8 ("Deductions for Contributions to Qualifying Alabama Achieving a Better Life Experience Savings Accounts.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-18-15.8?
A common citation format is "Code of Alabama § 40-18-15.8" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-18-15.8 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.