HB555INTRODUCED
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HB555
NRHWITT-1
By Representatives Hall, Lawrence, McClammy, Morris, Hassell,
Bracy, Tillman, Jackson, Travis, Lands, Gray, Forte, Chestnut,
Warren
RFD: Ways and Means Education
First Read: 09-Apr-25
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7 NRHWITT-1 04/02/2025 RA (F)RA 2025-836
Page 1
First Read: 09-Apr-25
SYNOPSIS:
This bill creates the Single Parent Support Tax
Credit, which establishes a state income tax credit for
certain single parent taxpayers.
A BILL
TO BE ENTITLED
AN ACT
Relating to income tax; to create the Single Parent
Support Tax Credit; to provide a state income tax credit to
certain single parents; and to provide for the Department of
Revenue to implement this act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known as the Single Parent
Support Tax Credit Act.
Section 2. The Legislature finds and declares that
single parents often face significant financial challenges
associated with rearing a child. State laws mandating
pregnancy outcomes increase the financial burden on
individuals with limited options. However, tax credits offer
direct financial relief, helping to improve outcomes for both
parents and children by easing some of the economic pressures
they face.
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they face.
Section 3. (a) For the purpose of this act the term
"single parent" means an individual who is unmarried, not
cohabiting with a partner, and has legal and physical custody
of a child.
(b)(1) For tax years beginning on or after January 1,
2026, and ending December 31, 2030, a single parent who
carried a pregnancy to term may claim an income tax credit of
five thousand dollars ($5,000) for each tax year of the first
five years of the child's life.
(2) If the eligible single parent's income tax
liability is less than the credit amount, the difference shall
be issued to the parent as a refund.
(3) No tax credit provided by this section may be
transferred or sold to another taxpayer.
(c) The single parent income tax credit shall be
limited to an aggregate amount of five million dollars
($5,000,000) each tax year.
(d) Prior to claiming a credit under this act, a single
parent shall submit to the Department of Revenue all of the
following:
(1) Medical documentation.
(2) State law documentation.
(3) Any other verifiable evidence the department
requests.
Section 4. (a) The Department of Revenue shall adopt
rules to implement and administer this act, including, but not
limited to:
(1) Implementing a streamlined process for the
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(1) Implementing a streamlined process for the
application of the credit, including a portal to submit the
required documentation; and
(2) Creating a public awareness campaign to inform
eligible individuals about the availability of the tax credit.
(b) The department shall review all applications for
the credit to verify compliance with the eligibility criteria
set forth in this act.
(c) Any fraudulent claims made in connection with the
application shall be subject to a five hundred dollar ($500)
fine.
Section 5. Prior to each regular session of the
Legislature, the Department of Revenue shall provide the
Legislature with a report on the credit's fiscal impact and
recommend adjustment to the credit amount or eligibility
criteria.
Section 6.The provisions of this act are severable.
If any part of this act is declared invalid or
unconstitutional, that declaration shall not affect the part
which remains.
Section 7. This act shall become effective on October
1, 2025.
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