Alabama 2024 Regular Session

Alabama House Bill HB356 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~HB356ENGROSSED~~
	1	+	HB356INTRODUCED
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3	3		HB356
4		-	~~UFP5GXG-2~~
	4	+	P24QGGG-1
5	5		By Representatives Kiel, Stadthagen, Woods, Mooney, Gidley,
6	6		Standridge, Kirkland, Brown, Yarbrough, Colvin, Paschal,
7	7		Stubbs, Underwood, Rigsby, Pettus, Wilcox, Lamb, Faulkner,
8		-	~~Stringer~~
	8	+	Pringle
9	9		RFD: Ways and Means Education
10	10		First Read: 21-Mar-24
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18		-	8 ~~HB356 Engrossed~~
	18	+	8 P24QGGG-1 01/03/2024 TEW (F) TEW 2024-12
19	19		Page 1
20	20		First Read: 21-Mar-24
	21	+	SYNOPSIS:
	22	+	This bill would provide a state income tax
	23	+	credit to individuals and businesses that make
	24	+	voluntary cash contributions to an eligible pregnancy
	25	+	center or residential maternity facility.
21	26		A BILL
22	27		TO BE ENTITLED
23	28		AN ACT
24	29		Relating to income tax; to enact the Pregnancy Resource
25	30		Act; to provide a state income tax credit to individuals and
26	31		businesses that make contributions to eligible charitable
27		-	organizations that operate as a pregnancy center,
28		-	state-licensed mobile medical clinic serving women, or
	32	+	organizations that operate as a pregnancy center or
29	33		residential maternity facility; and to specify the obligations
30	34		of the Department of Revenue in implementing the act.
31	35		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
32	36		Section 1. (a) This section shall be known and may be
33	37		cited as the "Pregnancy Resource Act."
34	38		(b) For the purposes of this section, the following
35	39		words and phrases have the meanings ascribed in this section
36	40		unless the context clearly indicates otherwise:
37	41		(1) "Department" means the Department of Revenue.
38	42		(2) "Eligible charitable organization" means an
39		-	organization that is all of the following:
40		-	a. Exempt from federal income taxation under Section
41		-	501(c)(3) of the Internal Revenue Code.
42		-	b. An Alabama nonprofit formed under Title 10A, Chapter
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70		-	28 HB356 ~~Engrossed~~
	70	+	28 HB356 INTRODUCED
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	72	+	(2) "Eligible charitable organization" means an
	73	+	organization that is all of the following:
	74	+	a. Exempt from federal income taxation under Section
	75	+	501(c)(3) of the Internal Revenue Code.
72	76		b. An Alabama nonprofit formed under Title 10A, Chapter
73	77		3, Code of Alabama 1975.
74		-	c. A pregnancy center, state-licensed mobile medical
75		-	clinic serving women, or residential maternity facility that
76		-	does all of the following:
	78	+	c. A pregnancy center or residential maternity facility
	79	+	that does all of the following:
77	80		1. Regularly answers a dedicated phone number for
78	81		clients.
79	82		2. Maintains in this state its primary physical office,
80		-	clinic, mobile facility, or residential home, which is open
81		-	for clients for a minimum of 20 hours a week, excluding state
82		-	holidays.
	83	+	clinic, or residential home, which is open for clients for a
	84	+	minimum of 20 hours a week, excluding state holidays.
83	85		3. Offers services, at no cost to the client, for the
84	86		express purpose of providing assistance to women in order to
85	87		carry their pregnancy to term, encouraging parenting or
86	88		adoption, preventing abortion, and promoting healthy
87	89		childbirth.
88	90		4. Utilizes trained and licensed medical professionals
89	91		to perform any available medical procedures.
90	92		(c)(1) The tax credit authorized in this section shall
91	93		be available to both of the following:
92	94		a. A taxpayer who is an individual taxpayer, except
93	95		that a husband and wife who file separate returns for a
94	96		taxable year in which they could have filed a joint return may
95	97		each claim only one-half of the tax credit that would have
96	98		been allowed for a joint return.
97	99		b. A taxpayer who is a business enterprise engaged in
98	100		commercial, industrial, or professional activities and
99		-	operating as a corporation, limited liability company,
100		-	partnership, or sole proprietorship.
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	128	+	56 HB356 INTRODUCED
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	130	+	commercial, industrial, or professional activities and
	131	+	operating as a corporation, limited liability company,
130	132		partnership, or sole proprietorship.
131	133		(2) Except as otherwise provided in this section, a
132	134		credit is allowed against the state income tax imposed by
133	135		Section 40-18-2, Code of Alabama 1975, for voluntary cash
134	136		contributions made by a taxpayer during the taxable year to an
135	137		eligible charitable organization. The amount of credit that
136	138		may be claimed by a taxpayer in a taxable year shall not
137	139		exceed 50 percent of the total state income tax liability of
138	140		the taxpayer. Any tax credit claimed under this section but
139	141		not used in any taxable year may be carried forward for five
140	142		consecutive years from the close of the tax year in which the
141	143		credits were earned.
142	144		(3) A contribution for which a credit is claimed under
143	145		this section may not be used as a deduction by the taxpayer
144	146		for state income tax purposes.
145	147		(4) No tax credit provided by this section may be
146	148		transferred to another taxpayer.
147	149		(d) Taxpayers taking a credit authorized by this
148	150		section shall provide the name of the eligible charitable
149	151		organization and the amount of the contribution to the
150	152		department on forms provided by the department.
151	153		(e)(1) An eligible charitable organization shall
152	154		provide the department with a written certification that it
153	155		meets all criteria to be considered an eligible charitable
154	156		organization. The organization shall also notify the
155	157		department within 60 days of any changes that may affect
156	158		eligibility under this section.
157		-	(2) The eligible charitable organization's written
158		-	certification must be signed by an officer of the organization
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	186	+	84 HB356 INTRODUCED
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	188	+	eligibility under this section.
	189	+	(2) The eligible charitable organization's written
188	190		certification must be signed by an officer of the organization
189	191		under penalty of perjury. The written certification shall
190	192		include all of the following:
191	193		a. Verification of the organization's status under
192	194		Section 501(c)(3) of the Internal Revenue Code.
193	195		b. A statement that the organization does not provide,
194	196		pay for, refer for, promote or provide coverage of drug
195	197		induced or surgical abortions and does not financially or
196	198		otherwise support, partner with, or affiliate with any other
197	199		entity that provides, pays for, refers for, promotes or
198	200		provides coverage of abortions, including nonsurgical
199	201		abortions and abortifacients.
200	202		c. A statement that the organization maintains its
201	203		principal office or presence in this state and that at least
202	204		50 percent of its clients claim to be residents of this state.
203	205		(f) The department shall review each written
204	206		certification and determine whether the organization meets all
205	207		the criteria to be considered an eligible charitable
206	208		organization and notify the organization of its determination.
207	209		The department may also periodically request recertification
208	210		from the organization. The department shall compile and make
209	211		available to the public a list of eligible charitable
210	212		organizations.
211	213		(g) Tax credits authorized by this section that are
212	214		earned by a partnership, limited liability company, S
213	215		corporation, or other similar pass-through entity, shall be
214	216		allocated among all partners, members, or shareholders,
215		-	respectively, either in proportion to their ownership interest
216		-	in such entity or as the partners, members, or shareholders
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	244	+	112 HB356 INTRODUCED
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	246	+	allocated among all partners, members, or shareholders,
	247	+	respectively, either in proportion to their ownership interest
246	248		in such entity or as the partners, members, or shareholders
247	249		mutually agree as provided in an executed document.
248	250		(h) A taxpayer shall apply for credits with the
249	251		department on forms prescribed by the department. In the
250	252		application, the taxpayer shall certify to the department the
251	253		dollar amount of the contributions made or to be made during
252	254		the calendar year. Within 30 days after the receipt of an
253	255		application, the department shall allocate credits based on
254	256		the dollar amount of contributions as certified in the
255	257		application. However, if the department cannot allocate the
256	258		full amount of credits certified in the application due to the
257	259		limit on the aggregate amount of credits that may be awarded
258	260		under this section in a calendar year, the department shall so
259	261		notify the applicant within 30 days with the amount of
260	262		credits, if any, that may be allocated to the applicant in the
261	263		calendar year. Once the department has allocated credits to a
262	264		taxpayer, if the contribution for which a credit is allocated
263	265		has not been made as of the date of the allocation, then the
264	266		contribution must be made not later than 90 days from the date
265	267		of the allocation. If the contribution is not made within such
266	268		time period, the allocation shall be cancelled and returned to
267	269		the department for reallocation. Upon final documentation of
268	270		the contributions, if the actual dollar amount of the
269	271		contributions is lower than the amount estimated, the
270	272		department shall adjust the tax credit allowed under this
271	273		section.
272	274		(i) The aggregate amount of tax credits that may be
273		-	allocated by the department under this section during a
274		-	calendar year shall not exceed ten million dollars
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	302	+	140 HB356 INTRODUCED
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	304	+	(i) The aggregate amount of tax credits that may be
	305	+	allocated by the department under this section during a
304	306		calendar year shall not exceed ten million dollars
305	307		($10,000,000). No more than 50 percent of the total amount of
306	308		credits provided for by this section may be allocated for
307	309		contributions to a single eligible charitable organization
308	310		during a calendar year.
309	311		(j) The department may enact rules as necessary to
310	312		implement and administer the provisions of this section.
311	313		(k) The tax credits allowed under this section shall be
312	314		effective January 1, 2025, for the 2025 tax year and shall
313	315		continue through the 2029 tax year, unless extended by act of
314	316		the Legislature.
315	317		Section 2. This act shall become effective on January
316	318		1, 2025.
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330		-	1, 2025.
331		-	House of Representatives
332		-	Read for the first time and referred
333		-	to the House of Representatives
334		-	committee on Ways and Means
335		-	Education
336		-	................21-Mar-24
337		-	Read for the second time and placed
338		-	on the calendar:
339		-	1 amendment
340		-	................25-Apr-24
341		-	Read for the third time and passed
342		-	as amended
343		-	Yeas 75
344		-	Nays 28
345		-	Abstains 0
346		-	................30-Apr-24
347		-	John Treadwell
348		-	Clerk
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