SB212 Alabama 2023 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

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

SB212 would create a state income tax credit for individuals and businesses who donate cash to eligible pregnancy centers or residential maternity facilities in Alabama, administered by the Department of Revenue with annual caps and eligibility rules.

What This Bill Does

It authorizes a tax credit against Alabama's state income tax for voluntary cash contributions to eligible organizations, equal to up to 50% of the taxpayer's tax liability. The program is capped at $10 million in credits per calendar year, and no more than 50% of the credits may go to a single eligible organization. Credits are non-transferable, not deductible, and can be carried forward for five years; pass-through entities allocate credits among owners. The Department of Revenue will certify eligible organizations, collect contribution information, allocate credits, and publish a list of eligible organizations, with organizations required to certify eligibility and notify of changes.

Who It Affects

• Individual and business taxpayers who donate cash to eligible pregnancy centers or residential maternity facilities; they could claim a credit against their Alabama income tax up to 50% of their liability, subject to the annual cap and other rules.
• Eligible charitable organizations that operate as pregnancy centers or residential maternity facilities and the Department of Revenue; organizations must certify eligibility and maintain Alabama operations, while the Department administers certification, allocation, and public listing of eligible organizations.

Key Provisions

• Eligible charitable organization criteria: must be a 501(c)(3) federally exempt nonprofit formed in Alabama, operate as a pregnancy center or residential maternity facility, regularly answer a dedicated client phone line, maintain a primary Alabama office open at least 20 hours per week, offer no-cost services to support pregnancy, parenting/adoption, abortion prevention, and promote healthy childbirth, and use trained medical professionals for procedures.
• Tax credit mechanics: credits against state income tax (Section 40-18-2) equal to up to 50% of the taxpayer's liability; not transferable; cannot be claimed as a deduction; allowed to be carried forward for five years.
• Taxpayer eligibility: individuals may claim the credit; spouses filing separately may claim only half each; businesses (corporations, LLCs, partnerships, or sole proprietorships) may also claim; credits allocated for pass-through entities among partners/members according to ownership or mutual agreement.
• Annual cap and organization limit: total credits capped at $10,000,000 per calendar year; no more than 50% of the credits may be allocated to a single eligible organization in a year.
• Administration and timing: taxpayers apply to the Department of Revenue; credits allocated within 30 days of application; if the full amount cannot be allocated due to the cap, the department notifies the applicant of the portion that can be allocated; if a allocated contribution is not made within 90 days, the allocation is canceled and reallocated.
• Certification and reporting: eligible organizations must provide a written certification of eligibility, including 501(c)(3) status, no abortion services or support, Alabama presence, and at least 50% of clients being Alabama residents; the department reviews certifications and maintains a public list of eligible organizations.
• Adjustments and recertification: the department may request recertification; adjustments are made if actual contributions differ from estimated amounts; the department may require updates if eligibility criteria change.
• Effective period: credits are effective January 1, 2024 for the 2024 tax year and continue through the 2028 tax year unless extended by law; the act becomes effective on the date specified for enactment.

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