Alabama 2025 Regular Session

Alabama House Bill HB555 Compare Versions

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

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1	1	HB555INTRODUCED
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3	3	HB555
4	4	NRHWITT-1
5	5	By Representatives Hall, Lawrence, McClammy, Morris, Hassell,
6	6	Bracy, Tillman, Jackson, Travis, Lands, Gray, Forte, Chestnut,
7	7	Warren
8	8	RFD: Ways and Means Education
9	9	First Read: 09-Apr-25
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16	16	7 NRHWITT-1 04/02/2025 RA (F)RA 2025-836
17	17	Page 1
18	18	First Read: 09-Apr-25
19	19	SYNOPSIS:
20	20	This bill creates the Single Parent Support Tax
21	21	Credit, which establishes a state income tax credit for
22	22	certain single parent taxpayers.
23	23	A BILL
24	24	TO BE ENTITLED
25	25	AN ACT
26	26	Relating to income tax; to create the Single Parent
27	27	Support Tax Credit; to provide a state income tax credit to
28	28	certain single parents; and to provide for the Department of
29	29	Revenue to implement this act.
30	30	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
31	31	Section 1. This act shall be known as the Single Parent
32	32	Support Tax Credit Act.
33	33	Section 2. The Legislature finds and declares that
34	34	single parents often face significant financial challenges
35	35	associated with rearing a child. State laws mandating
36	36	pregnancy outcomes increase the financial burden on
37	37	individuals with limited options. However, tax credits offer
38	38	direct financial relief, helping to improve outcomes for both
39	39	parents and children by easing some of the economic pressures
40	40	they face.
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70	70	they face.
71	71	Section 3. (a) For the purpose of this act the term
72	72	"single parent" means an individual who is unmarried, not
73	73	cohabiting with a partner, and has legal and physical custody
74	74	of a child.
75	75	(b)(1) For tax years beginning on or after January 1,
76	76	2026, and ending December 31, 2030, a single parent who
77	77	carried a pregnancy to term may claim an income tax credit of
78	78	five thousand dollars ($5,000) for each tax year of the first
79	79	five years of the child's life.
80	80	(2) If the eligible single parent's income tax
81	81	liability is less than the credit amount, the difference shall
82	82	be issued to the parent as a refund.
83	83	(3) No tax credit provided by this section may be
84	84	transferred or sold to another taxpayer.
85	85	(c) The single parent income tax credit shall be
86	86	limited to an aggregate amount of five million dollars
87	87	($5,000,000) each tax year.
88	88	(d) Prior to claiming a credit under this act, a single
89	89	parent shall submit to the Department of Revenue all of the
90	90	following:
91	91	(1) Medical documentation.
92	92	(2) State law documentation.
93	93	(3) Any other verifiable evidence the department
94	94	requests.
95	95	Section 4. (a) The Department of Revenue shall adopt
96	96	rules to implement and administer this act, including, but not
97	97	limited to:
98	98	(1) Implementing a streamlined process for the
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128	128	(1) Implementing a streamlined process for the
129	129	application of the credit, including a portal to submit the
130	130	required documentation; and
131	131	(2) Creating a public awareness campaign to inform
132	132	eligible individuals about the availability of the tax credit.
133	133	(b) The department shall review all applications for
134	134	the credit to verify compliance with the eligibility criteria
135	135	set forth in this act.
136	136	(c) Any fraudulent claims made in connection with the
137	137	application shall be subject to a five hundred dollar ($500)
138	138	fine.
139	139	Section 5. Prior to each regular session of the
140	140	Legislature, the Department of Revenue shall provide the
141	141	Legislature with a report on the credit's fiscal impact and
142	142	recommend adjustment to the credit amount or eligibility
143	143	criteria.
144	144	Section 6.The provisions of this act are severable.
145	145	If any part of this act is declared invalid or
146	146	unconstitutional, that declaration shall not affect the part
147	147	which remains.
148	148	Section 7. This act shall become effective on October
149	149	1, 2025.
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