HB284 Alabama 2025 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

2025 Regular Session

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

HB284 creates a state income tax credit for voluntary cash contributions to eligible pregnancy centers or residential maternity facilities, and sets administration and eligibility rules for the credit.

What This Bill Does

It allows individuals and businesses to claim a credit against Alabama state income tax for qualifying cash contributions to eligible pregnancy-related organizations, up to 50% of their tax liability (subject to annual caps). It establishes an annual credit limit of $10 million and restricts no more than 50% of credits to any single organization each year, with a 5-year carryforward for unused credits. It defines who qualifies as an eligible organization and requires certification and ongoing eligibility verification. It assigns administration to the Department of Revenue, including certification, allocation, reporting, and rulemaking.

Who It Affects

• Individuals and business taxpayers in Alabama who donate cash to eligible pregnancy centers or residential maternity facilities and could receive a credit up to 50% of their Alabama state income tax liability (subject to annual limits).
• Eligible charitable organizations that operate pregnancy centers or residential maternity facilities and meet the criteria (must certify eligibility, not provide or affiliate with abortion services, maintain a_state presence, and serve state residents).

Key Provisions

• Creates the Pregnancy Resource Act and a state income tax credit for voluntary cash contributions to eligible organizations that provide pregnancy assistance.
• Defines eligible charitable organizations as 501(c)(3) organizations or Alabama nonprofits that run pregnancy centers, mobile clinics, or residential maternity facilities meeting specific criteria (dedicated client contact, state-based office or facility open at least 20 hours/week, free services for pregnancy support, and use of trained professionals).
• Credit recipients include individual taxpayers (with spouses filing separately allowed to claim half each) and business entities (corporations, LLCs, partnerships, etc.).
• Credit is against the state income tax and cannot exceed 50% of the taxpayer’s total state tax liability; unused credits may be carried forward for 5 years; credits are non-transferable and cannot be claimed as deductions.
• Annual cap of $10,000,000 in credits per calendar year; no more than 50% of annual credits may be allocated to a single eligible organization.
• Eligible organizations must provide a written certification of eligibility (signed under penalty of perjury) and notify the Department of Revenue within 60 days of changes affecting eligibility; certification must include proof of status, no abortion services or affiliations, and that at least 50% of clients are state residents.
• The Department of Revenue reviews certifications, allocates credits within 30 days of applications, maintains a public list of eligible organizations, and may require recertification; an annual economic impact report is required.
• Credit allocations to pass-through entities (partnerships, LLCs, S corporations) are divided among owners according to ownership or mutual agreement.
• Contributions must be made within 90 days of allocation; if not, the allocation is canceled and funds are reallocated; final credits are adjusted if actual contributions differ from estimates.
• Effective date: credits apply beginning January 1, 2026 and continue through the 2030 tax year.

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