Relating to gross income; to amend Section 40-18-14, Code of Alabama 1975; to exclude difficulty of care payments from gross income.

HB 217 amends Alabama's tax code to exclude "difficulty of care payments" received by individual care providers under Medicaid Home and Community-Based Services Waiver programs from state gross income calculations. This change specifically affects care providers (such as home health aides) who receive these payments through Medicaid waiver programs. The bill adds a new exemption to Section 40-18-14 of Alabama's tax code, aligning with federal tax treatment under 26 U.S.C. § 131. As a result, these payments will no longer be included when calculating an individual's Alabama state income tax liability.