SB22 Alabama 2024 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2024

Title

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

Summary

SB22 creates a state income tax credit for individuals and businesses that donate cash to eligible pregnancy centers or residential maternity facilities in Alabama.

What This Bill Does

It 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 covers up to 50% of a taxpayer's state tax liability, but only up to a $10 million annual cap, with no more than half of the total credits in a year going to a single organization. Credits are non-transferable, cannot be deducted, and can be carried forward for five years. Organizations must certify eligibility and report contributions, and the Department of Revenue will maintain a public list of eligible groups and administer the program.

Who It Affects

• Individual taxpayers who donate cash to eligible pregnancy centers or residential maternity facilities and may receive a credit against their Alabama income tax (up to 50% of their tax liability, within the $10 million annual cap).
• Business enterprises (corporations, LLCs, partnerships, or sole proprietorships) that donate cash to eligible organizations and may receive the credit against their Alabama income tax, with pass-through allocations to owners or partners as applicable.

Key Provisions

• Creates the Pregnancy Resource Act to authorize a state income tax credit for voluntary cash contributions to eligible charitable organizations that operate as pregnancy centers or residential maternity facilities.
• Defines eligible charitable organizations as 501(c)(3) exempt, Alabama nonprofit entities that run a pregnancy center or residential maternity facility with a dedicated client phone line, a primary in-state office open at least 20 hours per week, free services to support pregnancy and promote healthy childbirth, and use of trained medical professionals.
• Allows the credit for both individuals and business enterprises, with separate treatment for married couples filing separately and for pass-through entities.
• Sets the credit amount at up to 50% of the taxpayer's total state income tax liability, with an annual cap of $10,000,000 for credits issued in a calendar year and a limit that no more than 50% of the total credits may go to a single eligible organization.
• Credits cannot be transferred or claimed as a deduction; credits may be carried forward for five years if unused.
• Requires eligible organizations to certify eligibility in writing (signed under penalty of perjury) and notify the Department of Revenue of any changes; the Department reviews certifications and publishes a list of eligible organizations.
• Requires taxpayers to apply for credits, with the Department allocating credits within 30 days of receipt; if full requested credits cannot be allocated due to the cap, the Department informs the applicant of the allocable amount; if the contributed amount is not made within 90 days of allocation, the allocation may be canceled and reallocated.
• Allocates pass-through credits among partners or members in proportion to ownership or as mutually agreed.
• Effective dates: October 1, 2024 for the act itself, with credits effective January 1, 2025 through 2029 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

Taxation & Revenue