HB85 Alabama 2023 Session

Summary

Primary Sponsor

Debbie Wood

Republican

Session

Regular Session 2023

Title

Relating to taxation; to amend Section 40-18-140, Code of Alabama 1975, to provide an income tax refund check-off for a contribution to the State Parks Division of the Department of Conservation and Natural Resources, the Department of Mental Health, or the Alabama Medicaid Agency.

Summary

HB85 creates new income tax refund check-offs to support the State Parks Division, the Department of Mental Health, and the Alabama Medicaid Agency.

What This Bill Does

It adds new refund check-offs on the Alabama individual income tax form for contributions to three programs starting with the 2024 tax year. Contributions go to the State Treasurer and are distributed to the respective agencies, with administrative costs capped at 5 percent. For the mental health check-off, contributions are distributed equally to the Alliance for the Mentally Ill of Alabama and to Mental Health Consumers of Alabama. If a check-off does not reach an average of 7,500 dollars per year over a three year period, it can be dropped from the tax form, and future check-offs will automatically have a box on the form without additional amendments.

Who It Affects

• Alabama resident individual income taxpayers who may designate part of their refund to the three programs
• The State Parks Division of the Department of Conservation and Natural Resources, the Department of Mental Health, and the Alabama Medicaid Agency who will receive funds from the check-offs

Key Provisions

• Adds income tax refund check-offs for contributions to the State Parks Division, the Department of Mental Health, and the Alabama Medicaid Agency beginning in the 2024 tax year
• Contributions designated for these programs are deposited with the State Treasurer and distributed to the respective agencies, with up to 5 percent of administrative costs allowed for the Department of Revenue
• Mental health check-off contributions are distributed equally between the Alliance for the Mentally Ill of Alabama and Mental Health Consumers of Alabama
• If, three years after adoption, a check-off fails to average $7,500 in annual contributions, it will be dropped from the tax return forms and repealed
• Future check-offs created after this bill will automatically receive a check-off box on the state tax return form without needing amendments
• Effective date: the act becomes effective on the first day of the third month following its passage and governor approval

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