HB7 Alabama 2017 Session

Summary

Primary Sponsor

Tommy Hanes

Republican

Session

Regular Session 2017

Title

Fire Departments, non-volunteer, diesel exhaust system installed in the fire station building, required within certain time frame and under certain conditions

Summary

HB7 would create a new income tax refund check-off allowing Alabama residents to donate part of their tax refund to the State Parks Division, the Department of Mental Health, or the Alabama Medicaid Agency, starting in 2017.

What This Bill Does

It adds a new option on the state income tax return for taxpayers to designate whole-dollar amounts to three state programs. The designated funds would be deposited with the State Treasurer and distributed to the selected programs, with administrative costs capped at 5%. If, after three years, the average annual gross contributions to this check-off do not reach $7,500, the check-off would be removed from the tax forms and repealed. The bill also states that future check-offs can appear on tax forms automatically without needing separate amendments.

Who It Affects

• Alabama residents who file individual income tax returns and choose to donate part of their refund to the specified programs.
• State Parks Division, Department of Mental Health, and Alabama Medicaid Agency, which would receive the designated contributions and use the funds for their respective program needs.

Key Provisions

• Adds an income tax refund check-off for contributions to the State Parks Division, the Department of Mental Health, or the Alabama Medicaid Agency, effective beginning in the 2017 tax year.
• Contributions are deposited with the State Treasurer and distributed to the designated programs, with administrative costs not to exceed five percent.
• If the check-off fails to average $7,500 in annual contributions over a three-year period, it will be removed from the tax return forms and repealed.
• Future check-offs can be added and appear on tax forms automatically without needing amendments to this section.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Fire Departments