House Bill 438 Alabama 2026 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

2026 Regular Session

Title

Income tax; to reinstate the income tax refund check-off for Victims of Crime and Leniency, Inc., and to repeal entities whose check-offs have been rescinded.

Summary

HB438 would reinstate VOCAL’s income tax refund check-off, consolidate all charitable check-offs into one section, repeal check-offs for programs with rescinded status, and set a performance threshold and effective date.

What This Bill Does

If passed, the bill would let Alabama residents designate part of their tax refund to Victims of Crime and Leniency, Inc. (VOCAL); it would also consolidate existing check-offs into a single code section and repeal others whose programs have been rescinded. The contributions would be collected by the Department of Revenue (with administrative costs capped at 5%) and distributed to VOCAL and a list of specified funds and programs. It sets a three-year performance test: if a check-off averages less than $7,500 in gross contributions per year over three years, it would be removed from future tax forms, and the act takes effect on October 1, 2026.

Who It Affects

• Alabama resident income taxpayers, who would be able to designate a portion of their refund to VOCAL or other check-offs on their tax forms and may see their refund amount adjusted by the designation.
• Victims of Crime and Leniency, Inc. (VOCAL), which would receive designated funds from the check-off and use them per its programs.
• Other groups and programs that currently have or would have check-offs, some of which may be repealed or consolidated into the newSection 40-18-140, affecting how they receive funding.
• The Alabama Department of Revenue and state agencies, which would administer the check-offs, ensure contributions are distributed to the designated funds, and enforce the performance threshold.

Key Provisions

• Reinstates the VOCAL income tax refund check-off, allowing taxpayers to designate an amount of their refund to VOCAL on the state return form.
• Consolidates all existing income tax check-offs into Section 40-18-140 and repeals Sections 40-18-154, 40-18-155, 40-18-156, and 40-18-157 that previously governed other check-offs.
• Repeals check-offs for entities whose programs have been rescinded and removes those programs from future tax-return check-offs.
• Specifies that contributions, after administrative costs (not to exceed 5%), shall be deposited and distributed to the listed funds and programs, including VOCAL and various other funds (e.g., Alabama Senior Services Trust Fund, Arts Development Fund, Alabama Nongame Wildlife Fund, etc.).
• Creates a distribution framework for designated funds, detailing deposits to the State Treasurer and distributions to the respective managing organizations or funds.
• Imposes a three-year performance test: if a check-off does not average at least $7,500 in gross contributions per year over a three-year period, its authorization will be removed and it will no longer appear on future tax forms.
• Establishes an effective date of October 1, 2026 for the act.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue