Alabama 2025 Regular Session

Alabama House Bill HB86 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HB86ENGROSSED~~
	1	+	HB86INTRODUCED
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3	3		HB86
4		-	~~6YWGJ13-2~~
	4	+	18NIZL3-1
5	5		By Representative Collins
6	6		RFD: Ways and Means Education
7	7		First Read: 04-Feb-25
8	8		PFD: 24-Jan-25
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14		-	6 ~~HB86 Engrossed~~
	14	+	6 18NIZL3-1 12/09/2024 RA (F)RA 2024-2740
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16	16		PFD: 24-Jan-25
	17	+	SYNOPSIS:
	18	+	This bill would establish a Rural Hospital
	19	+	Investment Program to provide financial support for
	20	+	rural hospitals in the State of Alabama.
	21	+	This bill would incentivize donations to rural
	22	+	hospitals by creating a tax credit for individuals and
	23	+	entities to offset their state income, excise, premium,
	24	+	and utility tax liability. Qualifying hospitals would
	25	+	use these donations to pay for their provision of acute
	26	+	care services to rural populations served by the
	27	+	hospitals. These funds may be used for direct care and
	28	+	operational expenses, including expenditures to
	29	+	maintain or upgrade facilities.
	30	+	This bill would also establish a board within
	31	+	the Office of the State Treasurer to determine the
	32	+	eligibility of qualifying rural hospitals to receive
	33	+	donations that qualify for the tax credit and to
	34	+	operate the program with the support of the Department
	35	+	of Revenue.
17	36		A BILL
18	37		TO BE ENTITLED
19	38		AN ACT
20		-	Relating to rural health care; to provide for funding of
21		-	rural general acute care, critical access, and rural
22		-	emergency hospitals by creating the Rural Hospital Investment
23		-	Program; to establish the Rural Hospital Investment Program
24		-	Board to administer the program; to provide for state income,
25		-	excise, premium, and utility tax credits in exchange for
26		-	donations to rural general acute care, critical access, and
27		-	rural emergency hospitals; and to provide for coordination
28		-	with the Alabama Department of Revenue.
29		-	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
30		-	Section 1.This act, the purpose of which is to
31		-	generate additional funds for eligible rural general acute
32		-	care, critical access, and rural emergency hospitals to
33		-	strengthen their financial viability, shall be known and may
34		-	be cited as the "Rural Hospital Investment Act of 2025."
35		-	Section 2.For the purposes of this act, the following
36		-	terms have the following meanings:
37		-	(1) BOARD. The Rural Hospital Investment Program
38		-	Board.
39		-	(2) DEPARTMENT. The Alabama Department of Revenue.
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	68	+	Relating to rural health care; to provide for funding
	69	+	of rural general acute care, critical access, and rural
	70	+	emergency hospitals by creating the Rural Hospital Investment
	71	+	Program; to establish the Rural Hospital Investment Program
	72	+	Board to administer the program ; to provide for state income,
	73	+	excise, premium, and utility tax credits in exchange for
	74	+	donations to rural general acute care, critical access, and
	75	+	rural emergency hospitals; and to provide for coordination
	76	+	with the Department of Revenue.
	77	+	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	78	+	Section 1.This act, the purpose of which is to
	79	+	generate additional funds for eligible rural general acute
	80	+	care, critical access, and rural emergency hospitals to
	81	+	strengthen their financial viability, shall be known and may
	82	+	be cited as the "Rural Hospital Investment Act of 2025."
	83	+	Section 2. For the purposes of this act, the following
	84	+	terms have the following meanings:
	85	+	(1) BOARD. The Rural Hospital Investment Program Board.
69	86		(2) DEPARTMENT. The Alabama Department of Revenue.
70	87		(3) ELIGIBLE RURAL HOSPITAL. A hospital that meets the
71		-	requirements ~~set out~~ in Section 4.
	88	+	requirements provided in Section 4.
72	89		(4) ELIGIBLE TAXES. Financial Institution Excise Tax,
73	90		Income Tax, Insurance Premium Tax, and Utility Tax.
74	91		(5) FINANCIAL INSTITUTION EXCISE TAX. The taxes levied
75	92		and collected pursuant to Chapter 16 of Title 40, Code of
76	93		Alabama 1975.
77		-	(6) INCOME TAX. The taxes levied and collected
78		-	pursuant to Chapter 18 of Title 40, Code of Alabama 1975.
79		-	(7) INSURANCE PREMIUM TAX. The taxes levied and
80		-	collected pursuant to Chapter 4A of Title 27, Code of Alabama
81		-	1975.
82		-	(8) PROGRAM. The Rural Hospital Investment Program.
83		-	(9) QUALIFIED DONATION. An unrestricted transfer of
84		-	funds for eligible rural hospitals.
85		-	(10) QUALIFIED DONOR. Any person, third party, or
86		-	organization that makes a qualified donation to an eligible
87		-	rural hospital.
88		-	(11) RURAL HOSPITAL. A rural general acute care,
89		-	rural emergency, or critical access hospital determined to be
90		-	located in a rural area as set out in Section 4(2).
91		-	(12) TAX YEAR. The calendar year for which annual
92		-	income is reported to the State of Alabama by a person that
93		-	makes a qualified donation.
94		-	(13) THIRD PARTY. An entity classified as a
95		-	tax-exempt nonprofit organization by the Internal Revenue
96		-	Service that participates in soliciting, administering, or
97		-	managing qualified donations for eligible rural hospitals.
	94	+	(6) INCOME TAX. The taxes levied and collected pursuant
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127		-	managing qualified donations for eligible rural hospitals.
128		-	(14) UTILITY TAX. The taxes levied and collected
	124	+	(6) INCOME TAX. The taxes levied and collected pursuant
	125	+	to Chapter 18 of Title 40, Code of Alabama 1975.
	126	+	(7) INSURANCE PREMIUM TAX. The taxes levied and
	127	+	collected pursuant to Chapter 4A of Title 27, Code of Alabama
	128	+	1975.
	129	+	(8) PROGRAM. The Rural Hospital Investment Program.
	130	+	(9) QUALIFIED DONATION. An unrestricted transfer of
	131	+	funds from a qualified donor to an eligible rural hospital.
	132	+	(10) QUALIFIED DONOR. Any person that makes a qualified
	133	+	donation to an eligible rural hospital.
	134	+	(11) RURAL HOSPITAL. A rural general acute care, rural
	135	+	emergency, or critical access hospital determined to be
	136	+	located in a rural area as provided in Section 4(2).
	137	+	(12) TAX YEAR. The calendar year for which annual
	138	+	income is reported to the State of Alabama by a person that
	139	+	makes a qualified donation.
	140	+	(13) UTILITY TAX. The taxes levied and collected
129	141		pursuant to Sections 40-21-82 through 40-21-107, Code of
130	142		Alabama 1975.
131	143		Section 3. (a) The Rural Hospital Investment Program
132	144		Board is established within the Office of the State Treasurer
133	145		to oversee the development and operation of the Rural Hospital
134	146		Investment Program. The board shall consist of the following
135	147		members:
136	148		(1) The Governor, or his or her designee.
137	149		(2) The State Treasurer, or his or her designee.
138	150		(3) The Commissioner of Revenue, or his or her
139	151		designee.
140	152		(4) The President Pro Tempore of the Senate, or his or
141		-	her designee.
142		-	(5) The Speaker of the House of Representatives, or his
143		-	or her designee.
144		-	(6) Two representatives of the Alabama Hospital
145		-	Association, appointed by the association.
146		-	(7) Two representatives of business, appointed by the
147		-	Business Council of Alabama.
148		-	(b) Members shall be appointed within 30 days of the
149		-	effective date of this act.
150		-	(c)(1) The appointing authorities for the members
151		-	appointed pursuant to subdivisions (a)(6) and (a)(7) shal1
152		-	each appoint one initial member to the board for a term of two
153		-	years and one initial member to the board for a term of four
154		-	years.
155		-	(2) Members subsequently appointed to the board
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	180	+	84 HB86 INTRODUCED
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185		-	(2) Members subsequently appointed to the board
186		-	pursuant to subdivisions (a)(6) and (a)(7) shall each serve
187		-	for a term of four years.
188		-	(3) A vacancy on the board of a representative
189		-	appointed pursuant to subdivisions (a)(6) and (a)(7) shall be
190		-	filled by the respective appointing authority before the next
191		-	scheduled meeting of the board and the appointee shall serve
192		-	for the remainder of the unexpired term.
	182	+	(4) The President Pro Tempore of the Senate, or his or
	183	+	her designee.
	184	+	(5) The Speaker of the House of Representatives, or his
	185	+	or her designee.
	186	+	(6) Two representatives of the Alabama Hospital
	187	+	Association, appointed by the association.
	188	+	(b) Members shall be appointed within 30 days of the
	189	+	effective date of this act.
	190	+	(c)(1) The Alabama Hospital Association shal1 appoint
	191	+	one initial member to the board for a term of two years and
	192	+	one initial member to the board for a term of four years.
	193	+	(2) A member subsequently appointed to the board by
	194	+	the Alabama Hospital Association s hall serve for a term of
	195	+	four years.
	196	+	(3) A vacancy on the board of a representative of the
	197	+	Alabama Hospital Association shall be filled by the Alabama
	198	+	Hospital Association before the next scheduled meeting of the
	199	+	board and the appointee shall serve for the remainder of the
	200	+	unexpired term.
193	201		(d) Designees or appointees to the board shall be
194		-	inclusive and reflect the racial, gender, geographic, ~~urban~~,
195		-	~~rural~~, and economic diversity of the state.
196		-	(e)(1) No later than ~~two~~ months after the effective
	202	+	inclusive and reflect the racial, gender, geographic, rural,
	203	+	urban, and economic diversity of the state.
	204	+	(e)(1) No later than three months after the effective
197	205		date of this act, the Governor, or his or her designee, shall
198		-	call the first meeting of the board, at which ~~meeting the~~
199		-	~~members~~ shall elect a chair.
	206	+	call the first meeting of the board, at which the members
	207	+	shall elect a chair.
200	208		(2) The board shall meet at least once a year in
201		-	Montgomery, Alabama, but thereafter ~~shall~~ meet as necessary to
	209	+	Montgomery, Alabama, but thereafter sha11 meet as necessary to
202	210		conduct its business.
203		-	(3) A quorum for a meeting of the board shall be five
204		-	members.
205		-	(4) The board may meet by electronic means, so long as
206		-	there is a quorum of participating members.
207		-	(5) The legislative members of the board shall be
208		-	entitled to their legislative compensation, per diem, and
209		-	travel expenses for each day they attend a meeting of the
210		-	board pursuant to Section 49 of the Constitution of Alabama of
211		-	2022.
212		-	(6) The nonlegislative members of the board shall serve
213		-	without compensation but may be reimbursed for necessary
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	240	+	conduct its business.
	241	+	(3) A quorum for a meeting of the board shall be four
	242	+	members.
	243	+	(4) The board may meet by electronic means, so long as
	244	+	there is a quorum of participating members.
	245	+	(5) The legislative members of the board shall be
	246	+	entitled to their legislative compensation, per diem, and
	247	+	travel expenses for each day they attend a meeting of the
	248	+	board pursuant to Section 49 of the Constitution of Alabama of
	249	+	2022.
	250	+	(6) The nonlegislative members of the board shall serve
243	251		without compensation but may be reimbursed for necessary
244	252		expenses in attending meetings of the board pursuant to the
245	253		policies of his or her respective appointing authority.
246		-	Section 4. ~~In order~~ to receive qualified donations as
247		-	an eligible rural hospital under the program, a health care
	254	+	Section 4. To receive qualified donations as an
	255	+	eligible rural hospital under the program, a health care
248	256		institution shall meet all of the following requirements:
249	257		(1) Be a rural general acute care hospital, a rural
250	258		emergency hospital, or a critical access hospital licensed by
251	259		the Alabama Department of Public Health pursuant to Section
252	260		22-21-22, Code of Alabama 1975.
253	261		(2) Be in a location considered to be a rural area
254		-	under the federal Centers for Medicare & Medicaid Services
	262	+	under the federal Centers for Medicare and Medicaid Services
255	263		eligibility definition of "rural" as verified through the
256		-	Federal Office of Rural Health Policy in the Rural Health
257		-	Information website supported by the federal Health Resources
258		-	and Services Administration.
	264	+	Rural Health Information website supported by the federal
	265	+	Health Resources and Services Administration.
259	266		(3) Provide hospital services to both Medicare and
260	267		Medicaid participants without discrimination.
261	268		(4) Provide hospital services to indigent patients,
262		-	regardless of ability to pay.
263		-	(5) Be in compliance with all reports and audits
264		-	required by law.
265		-	(6) Submit to the board a written five-year plan that
266		-	describes the financial viability and stability of the
267		-	hospital, with a plan detailing how it would use qualified
268		-	donations under the program and update the written plan five
269		-	years after the initial plan is submitted and every five years
270		-	thereafter.
271		-	Section 5. The board shall do all of the following:
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	298	+	(4) Provide hospital services to indigent patients,
	299	+	regardless of ability to pay.
	300	+	(5) Be in compliance with all reports and audits
	301	+	required by law.
	302	+	(6) Submit to the board a written five-year plan that
	303	+	describes the financial viability and stability of the
	304	+	hospital, with a plan detailing how it would use qualified
	305	+	donations under the program and update the written plan five
	306	+	years after the initial plan is submitted and every five years
	307	+	thereafter.
301	308		Section 5. The board shall do all of the following:
302		-	(1) No later than November 1 of each year, determine if
303		-	a hospital is an eligible rural hospital pursuant to Section
304		-	4.
305		-	(2) No later than December 1 of each year, develop a
306		-	list of eligible rural hospitals and include each hospital's
307		-	demonstrated financial need as demonstrated in the hospital's
308		-	written five-year plan and submit the list, including each
309		-	hospital's demonstrated financial need, to the Alabama
310		-	Department of Revenue.
311		-	(3) No later than December 1 each year, publish on its
312		-	website or on the department website the list of rural
313		-	hospitals, including each hospital's demonstrated financial
314		-	need, eligible to receive qualified donations during the next
315		-	tax year.
	309	+	(1) By November 1 of each year, determine if a hospital
	310	+	is an eligible rural hospital pursuant to Section 4.
	311	+	(2) By December 1 of each year, submit the list of
	312	+	eligible rural hospitals to the Alabama Department of Revenue.
	313	+	(3) By December 31 of each year, publish a list of
	314	+	rural hospitals eligible to receive qualified donations during
	315	+	the next tax year on its website or on the department's
	316	+	website.
316	317		Section 6. (a) An eligible rural hospital shall only
317	318		use qualified donations for the purpose of providing health
318	319		care to the residents of the area which it serves, which may
319	320		include operational expenditures and expenditures for
320	321		maintenance, capital upgrades, and improvements.
321		-	(b) An eligible rural hospital may retain a person,
322		-	third party, or an organization to solicit or manage the
323		-	qualified donations it receives for a percentage fee of the
324		-	qualified donations solicited or managed, but total fees shall
325		-	not exceed five percent of the total amount of qualified
326		-	donations received during a calendar year.
327		-	(c) Any third party that participates in soliciting,
328		-	advertising, or managing donations shall provide the complete
329		-	list of eligible rural hospitals, including demonstrated
	322	+	(b) An eligible rural hospital may retain a person to
	323	+	solicit or manage the qualified donations it receives for a
	324	+	percentage fee of the qualified donations solicited or
	325	+	managed, but total fees may not exceed five percent of the
	326	+	total amount of qualified donations received during a calendar
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359		-	list of eligible rural hospitals, including demonstrated
360		-	financial needs as published by the department to any
361		-	potential donor regardless of whether a third party has a
362		-	relationship or agreement with an eligible rural hospital.
363		-	(d) Starting in March of tax year 2027, an eligible
364		-	rural hospital shall file a report with the board, on a form
365		-	to be provided by the board that shall include all of the
366		-	following information:
	356	+	total amount of qualified donations received during a calendar
	357	+	year.
	358	+	(c) By March 1 of each year, an eligible rural hospital
	359	+	shall file a report with the board, on a form to be developed
	360	+	by the board that shall include all of the following
	361	+	information:
367	362		(1) A schedule of each qualifying donation received
368	363		during the preceding tax year, which includes the amount,
369		-	identifies the qualified ~~donors~~, and describes how the
	364	+	identifies the qualified donor, and describes how the
370	365		qualified donation was or is planned to be spent.
371		-	(2) A schedule of payments made to any person, third
372		-	party, or organization during the preceding tax year for the
373		-	purpose of soliciting or managing the qualified donations
374		-	received.
375		-	(e) An eligible rural hospital shall report all
376		-	donations received to the department within 30 days of the
377		-	receipt of that donation.
	366	+	(2) A schedule of payments made to any person during
	367	+	the preceding tax year for the purpose of soliciting or
	368	+	managing the qualified donations received.
	369	+	(d) An eligible rural hospital shall report all
	370	+	donations received from a taxpayer to the department within 30
	371	+	days of the receipt of that donation.
378	372		Section 7. Annually, the board and the department shall
379	373		jointly prepare a report that, at a minimum, includes all
380	374		qualified donations reported by eligible rural hospitals and
381	375		all tax credits claimed and approved pursuant to this act for
382	376		the preceding tax year. This report shall be provided to the
383	377		Legislature by the fifth day of the next regular session.
384	378		Section 8. (a) A taxpayer may claim a tax credit to
385	379		offset eligible taxes for each qualified donation as provided
386		-	in this section.
387		-	(1) For a donor who is a single individual, a head of
	380	+	in this section. The tax credit shall be provided as follows:
	381	+	(1) For a qualified donor who is a single individual, a
	382	+	head of household, or married, filing a separate return: an
	383	+	amount equal to 100 percent of the qualified donations to the
	384	+	taxpayer made during the tax year for which the credit is
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416	413		Page 8
417		-	(1) For a donor who is a single individual, a head of
418		-	household, or married, filing a separate return: an amount
419		-	equal to 100 percent of the qualified donations to the
420	414		taxpayer made during the tax year for which the credit is
421	415		claimed, not to exceed fifteen thousand dollars ($15,000).
422		-	(2) For a donor who is married, filing a joint return:
423		-	100 percent of the qualified donations to the taxpayer made
424		-	during the tax year for which the credit is claimed, not to
425		-	exceed thirty thousand dollars ($30,000).
426		-	(3) a. For a qualified donor that is taxed as an
427		-	electing pass-through entity under Section 40-18-24.4, Code of
428		-	Alabama 1975: 100 percent of the qualified donations to the
	416	+	(2) For a qualified donor who is married, filing a
	417	+	joint return: 100 percent of the qualified donations to the
	418	+	taxpayer made during the tax year for which the credit is
	419	+	claimed, not to exceed thirty thousand dollars ($30,000).
	420	+	(3)a. For a qualified donor that is taxed as a
	421	+	pass-through entity under subchapters S or K of the Internal
	422	+	Revenue Code, a limited liability company, or a professional
	423	+	corporation: 100 percent of the qualified donations to the
429	424		taxpayer made during the tax year for which the credit is
430	425		claimed, not to exceed four hundred fifty thousand dollars
431	426		($450,000).
432	427		b. The tax credit shall be taken by the taxpayer on a
433		-	pro rata basis according to the percentage of ownership in the
434		-	entity or the limitations set forth in this section, whichever
435		-	is less. In the case of a donor that is taxed as a corporation
436		-	under the Internal Revenue Code, an amount equal to 100
437		-	percent or 75 percent of the corporation's income, excise, or
438		-	insurance premium tax, not to exceed the amount of the
439		-	corporation's income, excise, or insurance premium tax
440		-	liability, whichever is less, with a contribution limit each
441		-	tax year of five hundred thousand dollars ($500,000).
442		-	(4) a. A credit for utility taxes may be claimed in an
443		-	amount equal to 100 percent of total qualified donations
444		-	during the taxable year for which the credit is claimed. In
445		-	order to claim a credit against utility tax payments under
	428	+	pro rata basis according to an individual's percentage of
	429	+	ownership in the entity or fifteen thousand dollars ($15,000),
	430	+	whichever is less. In the case of a qualified donor that is
	431	+	taxed as a corporation under the Internal Revenue Code, an
	432	+	amount equal to 100 percent or 75 percent of the corporation's
	433	+	income, excise, utility, or insurance premium tax, not to
	434	+	exceed the amount of the corporation's income, excise,
	435	+	utility, or insurance premium tax liability, whichever is
	436	+	less, with a contribution limit each tax year of five hundred
	437	+	thousand dollars ($500,000).
	438	+	(b)(1) The total amount of the tax credit for a tax
	439	+	year may not exceed the taxpayer's tax liability or, for
	440	+	financial institutions, the state portion of the taxpayer's
	441	+	financial institution excise tax liability.
	442	+	(2) Any unused tax credit may be carried forward for up
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	470	+	224 HB86 INTRODUCED
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475		-	order to claim a credit against utility tax payments under
476		-	this section, a taxpayer must have a utility tax direct pay
477		-	permit from the department pursuant to its requirements. A
478		-	taxpayer shall provide a copy of the utility tax direct pay
479		-	permit to each utility provider from whom the taxpayer
480		-	receives services. A taxpayer holding a direct pay permit
481		-	shall notify the department of each qualified donation
482		-	pursuant to the department's procedures. To the extent credits
483		-	are available, the department shall reserve credits for a
484		-	taxpayer and provide written confirmation thereof.
485		-	b. Upon receipt of a qualified donation, the recipient
486		-	shall submit to the department certification of the donation
487		-	received from a taxpayer under this subdivision pursuant to
488		-	procedures established by the department within 30 business
489		-	days after receipt of each donation. Upon receipt of the
490		-	certification from the recipient, the department shall provide
491		-	written confirmation to the taxpayer within 30 business days
492		-	that the reserved credits of the taxpayer in the amounts of
493		-	qualified donations actually made and not yet claimed are
494		-	eligible to be utilized on its monthly utility tax direct pay
495		-	return. A taxpayer may not utilize a credit against the
496		-	utility tax until such time as the department provides the
497		-	notification described in the previous sentence.
498		-	(b)(1) The total amount of the tax credit for a tax
499		-	year may not exceed the taxpayer's tax liability or, for
500		-	financial institutions, the state portion of the taxpayer's
501		-	financial institution excise tax liability.
502	472		(2) Any unused tax credit may be carried forward for up
503		-	to three years following the qualified donation but shall not
	473	+	to three years following the qualified donations but shall not
	474	+	be transferable.
	475	+	(c)(1) The tax credits may be claimed beginning January
	476	+	1, 2026, for the 2026 tax year.
	477	+	(2) Except as provided in subdivision (b)(2), no tax
	478	+	credit may be claimed after tax year 2030.
	479	+	Section 9. (a) The statewide annual aggregate of the
	480	+	tax credit allowed for qualified d onations shall not exceed
	481	+	the following amounts:
	482	+	(1) Twenty million dollars ($20,000,000) for the tax
	483	+	year ending December 31, 2026.
	484	+	(2) Twenty-five million dollars ($25,000,000) for the
	485	+	tax year ending December 31, 2027.
	486	+	(3) Thirty million dollars ($30,000,000) for all
	487	+	subsequent tax years.
	488	+	(b) No more than seven hundred fifty thousand dollars
	489	+	($750,000) may be contributed to any eligible rural hospital
	490	+	in the tax year ending December 31, 2026; one million dollars
	491	+	($1,000,000) for the tax year ending December 31, 2027; and
	492	+	one million two hundred fifty thousand dollars ($1,250,000)
	493	+	each year thereafter, to be limited by the annual aggregate
	494	+	amount applicable in subsection (a).
	495	+	(c) The department shall preapprove each qualified
	496	+	donation for compliance with each applicable limit in
	497	+	subsections (a) and (b).
	498	+	Section 10. (a) The department shall adopt rules by
	499	+	January 1, 2026, as necessary to implement this act. The rules
	500	+	shall provide for all of the following:
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531		-	252 HB86 ~~Engrossed~~
	528	+	252 HB86 INTRODUCED
532	529		Page 10
533		-	to three years following the qualified donation but shall not
534		-	be transferable.
535		-	(c)(1) The tax credits may be claimed beginning January
536		-	1, 2026, for the 2026 tax year.
537		-	(2) Any unused tax credit may be carried forward for up
538		-	to three years following the qualified donations but shall not
539		-	be transferable.
540		-	Section 9. (a) The statewide annual aggregate of the
541		-	tax credit allowed for qualified donations shall not exceed
542		-	the following amounts:
543		-	(1) Twenty million dollars ($20,000,000) in the tax
544		-	year ending December 31, 2026.
545		-	(2) Twenty-five million dollars ($25,000,000) in the
546		-	tax year ending December 31, 2027.
547		-	(3) Thirty million dollars ($30,000,000) for all
548		-	subsequent tax years.
549		-	(b) No more than seven hundred fifty thousand dollars
550		-	($750,000) shall be contributed to any eligible rural hospital
551		-	in the tax year ending December 31, 2026; one million dollars
552		-	($1,000,000) for the tax year ending on December 31, 2027; and
553		-	one million two hundred fifty thousand dollars ($1,250,000)
554		-	each year thereafter, to be limited by the annual aggregate
555		-	amount applicable in subsection (a).
556		-	(c) In the event a qualified donor desires to make a
557		-	contribution to an individual eligible rural hospital that has
558		-	received the maximum amount of contributions for that year,
559		-	the donor shall be provided, upon request to the board, the
560		-	list of eligible rural hospitals and demonstrated financial
561		-	needs that are still eligible to receive contributions that
	530	+	shall provide for all of the following:
	531	+	(1) That the tax credits will not reduce the
	532	+	distribution to the Alabama Special Mental Health Trust Fund.
	533	+	(2) That the tax credits shall be awarded based on the
	534	+	order in which the credits are requested.
	535	+	(b) The Department shall prescribe the method by which
	536	+	the tax credits are to be issued to eligible taxpayers.
	537	+	Section 11. (a) The State Treasurer shall adopt rules
	538	+	to implement the responsibilities of the board and this act.
	539	+	(b) The board may retain an Alabama company to
	540	+	publicize the program, including the development of
	541	+	promotional and informational literature and a program website
	542	+	for use by eligible rural hospitals and qualified donors.
	543	+	Section 12. The tax credits created by this act may
	544	+	also qualify for federal income tax credits or deductions, but
	545	+	it is not intended for any qualified donation under this act
	546	+	to automatically qualify for any federal income tax credit or
	547	+	deduction.
	548	+	Section 13. This act shall become effective on October
	549	+	1, 2025.
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590		-	Page 11
591		-	needs that are still eligible to receive contributions that
592		-	year.
593		-	(d) In the event a qualified donor desires to make a
594		-	contribution to an individual eligible rural hospital that
595		-	exceeds the maximum amount allowed for that year, the
596		-	department shall not deny such desired contribution but shall
597		-	approve the proportional amount of the desired contribution up
598		-	to the eligible rural hospital's maximum amount of
599		-	contributions for that year and any remainder shall be
600		-	attributed to an eligible rural hospital with high financial
601		-	need that has not yet received the maximum amount of
602		-	contributions for that year.
603		-	(e) In the event that a qualified donor desires to make
604		-	a contribution to an unspecified or undesignated rural
605		-	hospital, such donation shall be attributed to the eligible
606		-	rural hospital with a high demonstrated financial need that
607		-	has not yet received the maximum amount of contributions for
608		-	that year, regardless of whether a third party has a
609		-	relationship or agreement with any eligible rural hospital.
610		-	(f) The department shall preapprove each qualified
611		-	donation for compliance with each applicable limit in
612		-	subsections (a) and (b).
613		-	Section 10. (a) The department shall adopt rules
614		-	pursuant to the Alabama Administrative Procedure Act on or
615		-	before January 1, 2026, as necessary to administer and
616		-	implement this act. The rules shall provide for all of the
617		-	following:
618		-	(1) That the tax credits will not reduce the
619		-	distribution for the Alabama Special Mental Health Fund.
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648		-	Page 12
649		-	distribution for the Alabama Special Mental Health Fund.
650		-	(2) That the tax credits shall be awarded based on the
651		-	order in which the credits are requested.
652		-	(b) The department shall prescribe the method by which
653		-	the tax credits are to be issued to eligible taxpayers.
654		-	Section 11. (a) The State Treasurer shall adopt rules,
655		-	on or before January 1, 2026, pursuant to the Alabama
656		-	Administrative Procedure Act necessary to implement the
657		-	responsibilities of the board and this act.
658		-	(b) The board may retain an Alabama company to
659		-	publicize the program, including the development of
660		-	promotional and information literature and a program website
661		-	for use by eligible rural hospitals and qualified donors.
662		-	Section 12. The tax credits created by this act may
663		-	also qualify for federal income tax credits or deductions, but
664		-	it is not intended for any qualified donation under this act
665		-	to automatically qualify for any federal income tax credit or
666		-	deduction.
667		-	Section 13. (a) The tax credits provided by this act
668		-	may be claimed beginning January 1, 2026, for the 2026 tax
669		-	year.
670		-	(b) Except as provided in Section 8(b)(2), no tax
671		-	credit may be claimed after tax year 2028.
672		-	Section 14. This act shall become effective
673		-	immediately.
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699		-	immediately.
700		-	House of Representatives
701		-	Read for the first time and referred
702		-	to the House of Representatives
703		-	committee on Ways and Means
704		-	Education
705		-	................04-Feb-25
706		-	Read for the second time and placed
707		-	on the calendar:
708		-	1 amendment
709		-	................03-Apr-25
710		-	Read for the third time and passed
711		-	as amended
712		-	Yeas 103
713		-	Nays 0
714		-	Abstains 0
715		-	................08-Apr-25
716		-	John Treadwell
717		-	Clerk
718		-	333
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739		-	354