HB208 Alabama 2023 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

Regular Session 2023

Title

To enact the Pregnancy Resource Act; Relating to income tax; to provide a state income tax credit to individuals and businesses that make contributions to eligible charitable organizations that operate as a pregnancy center or residential maternity facility; and to specify the obligations of the Department of Revenue in implementing the act.

Summary

HB208 creates a new Alabama state income tax credit for individuals and businesses that donate cash to eligible pregnancy centers or residential maternity facilities, administered by the Department of Revenue.

What This Bill Does

The bill provides a credit against Alabama income tax for voluntary cash contributions to eligible organizations that operate as pregnancy centers or residential maternity facilities. The credit can offset up to 50% of a taxpayer's state tax liability in a year, with a total annual cap of $10 million for all credits and a limit that no more than half of the credits in a year may go to a single organization; unused credits may be carried forward for five years. Credits are non-transferable and cannot be deducted; pass-through entities allocate credits to their owners. Eligible organizations must certify to the Department that they meet criteria (including 501(c)(3) status and Alabama-based operations) and be open and providing services in Alabama, with the Department maintaining a public list of eligible organizations and overseeing allocation and recertification processes.

Who It Affects

• Individuals who make qualifying cash contributions to eligible pregnancy centers or residential maternity facilities and may claim a credit equal to up to 50% of their Alabama income tax liability for the year (subject to the $10 million annual cap and other rules).
• Businesses and other taxpaying entities (corporations, LLCs, partnerships, sole proprietorships) that donate; credits are allocated to the entity and, for pass-through entities, to owners according to ownership, following the same 50% and $10 million annual cap rules.

Key Provisions

• Eligible charitable organization criteria: must be a 501(c)(3) Alabama nonprofit, operate as a pregnancy center or residential maternity facility, maintain a dedicated client phone line, operate in Alabama with a primary office open at least 20 hours/week (excluding holidays), provide services at no cost to clients to support carrying pregnancies to term, parenting, or adoption, and use trained/licensed medical professionals.
• Tax credit specifics: available to individuals (including married couples filing separately who may claim half of the joint credit) and to business enterprises; credits equal up to 50% of the taxpayer's Alabama income tax liability; annual aggregate cap of $10,000,000; no more than 50% of the total credits for a year may go to a single organization; unused credits may be carried forward for five years; credits cannot be used as a deduction and are non-transferable; pass-through allocations to partners/mmembers/shares according to ownership.
• Certification and oversight: eligible organizations must obtain written certification from the Department of Revenue confirming meeting all criteria, including statements about abortion-related activities and Alabama residency; organizations must notify the Department of changes that could affect eligibility; the Department reviews certifications, maintains a public list of eligible organizations, and may require recertification.
• Administration and timing: taxpayers apply for credits with forms prescribed by the Department; the Department allocates credits within 30 days of application receipt; if the total requested credits exceed the annual cap, the Department notifies applicants of the portion available; if a contribution is not made within 90 days of allocation, the credit allocation is canceled and reallocated; the Department adjusts credits if actual contributions differ from estimated amounts; credits are in effect for 2024 through 2028 tax years, subject to extension by the Legislature.
• Effective date: the act becomes law on the first day of the third month after passage, with credits applying to the 2024 tax year and continuing through 2028 unless extended.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Income tax, tax credit for voluntary cash contributions to pregnancy center or residential maternity facility