Alabama 2023 Regular Session

Alabama House Bill HB208 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB208INTRODUCED
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3	3	7BCPEE-1
4	4	By Representatives Kiel, Stadthagen, Lipscomb, Sells, Butler,
5	5	Shaw, Kirkland, Shirey, DuBose, Rigsby, Estes, Lamb, Moore
6	6	(P), Stringer, Marques, Brown, Carns, Underwood, Lomax, Wood
7	7	(D), Mooney, Ledbetter, Cole, Standridge, Hulsey, Stubbs,
8	8	Shedd, Colvin, Gidley, Wilcox, Collins, Kitchens, Whorton,
9	9	Yarbrough, Harrison, Crawford, Woods, Treadaway, Bedsole,
10	10	Fidler, Fincher
11	11	RFD: Ways and Means Education
12	12	First Read: 23-Mar-23
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23	23	11 7BCPEE-1 12/16/2022 TEW (F) TEW 2022-5337
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25	25	SYNOPSIS:
26	26	This bill would provide a state income tax
27	27	credit to individuals and businesses that make
28	28	voluntary cash contributions to an eligible pregnancy
29	29	center or residential maternity facility.
30	30	A BILL
31	31	TO BE ENTITLED
32	32	AN ACT
33	33	To enact the Pregnancy Resource Act; Relating to income
34	34	tax; to provide a state income tax credit to individuals and
35	35	businesses that make contributions to eligible charitable
36	36	organizations that operate as a pregnancy center or
37	37	residential maternity facility; and to specify the obligations
38	38	of the Department of Revenue in implementing the act.
39	39	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
40	40	Section 1. (a) This section shall be known and may be
41	41	cited as the "Pregnancy Resource Act."
42	42	(b) For the purposes of this section, the following
43	43	words and phrases have the meanings ascribed in this section
44	44	unless the context clearly indicates otherwise:
45	45	(1) "Department" means the Department of Revenue.
46	46	(2) "Eligible charitable organization" means an
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76	76	organization that is:
77	77	a. Exempt from federal income taxation under Section
78	78	501(c)(3) of the Internal Revenue Code; and
79	79	b. An Alabama nonprofit formed under Title 10A, Chapter
80	80	3, Code of Alabama 1975; and
81	81	c. A pregnancy center or residential maternity facility
82	82	that:
83	83	1. Regularly answers a dedicated phone number for
84	84	clients; and
85	85	2. Maintains in this state its primary physical office,
86	86	clinic, or residential home, which is open for clients for a
87	87	minimum of 20 hours a week, excluding state holidays; and
88	88	3. Offers services, at no cost to the client, for the
89	89	express purpose of providing assistance to women in order to
90	90	carry their pregnancy to term, encourage parenting or
91	91	adoption, prevent abortion, and promote healthy childbirth;
92	92	and
93	93	4. Utilizes trained and licensed medical professionals
94	94	to perform any available medical procedures.
95	95	(c)(1) The tax credit authorized in this section shall
96	96	be available to:
97	97	a. A taxpayer who is an individual taxpayer, except
98	98	that a husband and wife who file separate returns for a
99	99	taxable year in which they could have filed a joint return may
100	100	each claim only one-half of the tax credit that would have
101	101	been allowed for a joint return;
102	102	b. A taxpayer who is a business enterprise engaged in
103	103	commercial, industrial, or professional activities and
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133	133	operating as a corporation, limited liability company,
134	134	partnership, or sole proprietorship.
135	135	(2) Except as otherwise provided in this section, a
136	136	credit is allowed against the state income tax imposed by
137	137	Section 40-18-2, Code of Alabama 1975, for voluntary cash
138	138	contributions made by a taxpayer during the taxable year to an
139	139	eligible charitable organization. The amount of credit that
140	140	may be claimed by a taxpayer in a taxable year shall not
141	141	exceed 50 percent of the total state income tax liability of
142	142	the taxpayer. Any tax credit claimed under this section, but
143	143	not used in any taxable year, may be carried forward for five
144	144	consecutive years from the close of the tax year in which the
145	145	credits were earned.
146	146	(3) A contribution for which a credit is claimed under
147	147	this section may not be used as a deduction by the taxpayer
148	148	for state income tax purposes.
149	149	(4) No tax credit provided by this section may be
150	150	transferred to another taxpayer.
151	151	(d) Taxpayers taking a credit authorized by this
152	152	section shall provide the name of the eligible charitable
153	153	organization and the amount of the contribution to the
154	154	department on forms provided by the department.
155	155	(e)(1) An eligible charitable organization shall
156	156	provide the department with a written certification that it
157	157	meets all criteria to be considered an eligible charitable
158	158	organization. The organization shall also notify the
159	159	department within 60 days of any changes that may affect
160	160	eligibility under this section.
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190	190	(2) The eligible charitable organization's written
191	191	certification must be signed by an officer of the organization
192	192	under penalty of perjury. The written certification shall
193	193	include the following:
194	194	a. Verification of the organization's status under
195	195	Section 501(c)(3) of the Internal Revenue Code;
196	196	b. A statement that the organization does not provide,
197	197	pay for, refer for, promote or provide coverage of drug
198	198	induced or surgical abortions and does not financially or
199	199	otherwise support, partner with, or affiliate with any other
200	200	entity that provides, pays for, refers for, promotes or
201	201	provides coverage of abortions, including nonsurgical
202	202	abortions and abortifacients; and
203	203	c. A statement that the organization maintains its
204	204	principal office or presence in this state and that at least
205	205	50 percent of its clients claim to be residents of this state.
206	206	(f) The department shall review each written
207	207	certification and determine whether the organization meets all
208	208	the criteria to be considered an eligible charitable
209	209	organization and notify the organization of its determination.
210	210	The department may also periodically request recertification
211	211	from the organization. The department shall compile and make
212	212	available to the public a list of eligible charitable
213	213	organizations.
214	214	(g) Tax credits authorized by this section that are
215	215	earned by a partnership, limited liability company, S
216	216	corporation, or other similar pass-through entity, shall be
217	217	allocated among all partners, members, or shareholders,
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247	247	respectively, either in proportion to their ownership interest
248	248	in such entity or as the partners, members, or shareholders
249	249	mutually agree as provided in an executed document.
250	250	(h) A taxpayer shall apply for credits with the
251	251	department on forms prescribed by the department. In the
252	252	application the taxpayer shall certify to the department the
253	253	dollar amount of the contributions made or to be made during
254	254	the calendar year. Within 30 days after the receipt of an
255	255	application, the department shall allocate credits based on
256	256	the dollar amount of contributions as certified in the
257	257	application. However, if the department cannot allocate the
258	258	full amount of credits certified in the application due to the
259	259	limit on the aggregate amount of credits that may be awarded
260	260	under this section in a calendar year, the department shall so
261	261	notify the applicant within 30 days with the amount of
262	262	credits, if any, that may be allocated to the applicant in the
263	263	calendar year. Once the department has allocated credits to a
264	264	taxpayer, if the contribution for which a credit is allocated
265	265	has not been made as of the date of the allocation, then the
266	266	contribution must be made not later than 90 days from the date
267	267	of the allocation. If the contribution is not made within such
268	268	time period, the allocation shall be cancelled and returned to
269	269	the department for reallocation. Upon final documentation of
270	270	the contributions, if the actual dollar amount of the
271	271	contributions is lower than the amount estimated, the
272	272	department shall adjust the tax credit allowed under this
273	273	section.
274	274	(i) The aggregate amount of tax credits that may be
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304	304	allocated by the department under this section during a
305	305	calendar year shall not exceed ten million dollars
306	306	($10,000,000). No more than 50 percent of the total amount of
307	307	credits provided for by this section may be allocated for
308	308	contributions to a single eligible charitable organization
309	309	during a calendar year.
310	310	(j) The department may enact rules as necessary to
311	311	implement and administer the provisions of this section.
312	312	(k) The tax credits allowed under this section shall be
313	313	effective January 1, 2024, for the 2024 taxable year and shall
314	314	continue through the 2028 tax year, unless extended by act of
315	315	the Legislature.
316	316	Section 2. This act shall become effective on the first
317	317	day of the third month following its passage and approval by
318	318	the Governor, or its otherwise becoming law.
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