SB290INTRODUCED
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SB290
JWV2YYN-1
By Senator Allen
RFD: Finance and Taxation Education
First Read: 03-Apr-25
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5 JWV2YYN-1 05/22/2024 TEW (F) TEW 2024-1896
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First Read: 03-Apr-25
SYNOPSIS:
This bill would provide a state income tax
credit to individuals and businesses that make
voluntary cash contributions to an eligible pregnancy
center or residential maternity facility.
A BILL
TO BE ENTITLED
AN ACT
Relating to income tax; to enact the Pregnancy Resource
Act; Relating to income tax; to provide a state income tax
credit to individuals and businesses that make contributions
to eligible charitable organizations that operate as a
pregnancy center or residential maternity facility; and to
specify the obligations of the Department of Revenue in
implementing the act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) This section shall be known and may be
cited as the "Pregnancy Resource Act."
(b) For the purposes of this section, the following
words and phrases have the meanings ascribed in this section
unless the context clearly indicates otherwise:
(1) "Department" means the Department of Revenue.
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(1) "Department" means the Department of Revenue.
(2) "Eligible charitable organization" means an
organization that is all of the following:
a. Exempt from federal income taxation under Section
501(c)(3) of the Internal Revenue Code;
b. An Alabama nonprofit formed under Title 10A, Chapter
3, Code of Alabama 1975; and
c. A pregnancy center or residential maternity facility
that:
1. Regularly answers a dedicated phone number for
clients; and
2. Maintains in this state its primary physical office,
clinic, or residential home, which is open for clients for a
minimum of 20 hours a week, excluding state holidays; and
3. Offers services, at no cost to the client, for the
express purpose of providing assistance to women in order to
carry their pregnancy to term, encourage parenting or
adoption, prevent abortion, and promote healthy childbirth;
and
4. Utilizes trained and licensed medical professionals
to perform any available medical procedures.
(c)(1) The tax credit authorized in this section shall
be available to:
a. A taxpayer who is an individual taxpayer, except
that a husband and wife who file separate returns for a
taxable year in which they could have filed a joint return may
each claim only one-half of the tax credit that would have
been allowed for a joint return.
b. A taxpayer who is a business enterprise engaged in
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b. A taxpayer who is a business enterprise engaged in
commercial, industrial, or professional activities and
operating as a corporation, limited liability company,
partnership, or sole proprietorship.
(2) Except as otherwise provided in this section, a
credit is allowed against the state income tax imposed by
Section 40-18-2, Code of Alabama 1975, for voluntary cash
contributions made by a taxpayer during the taxable year to an
eligible charitable organization. The amount of credit that
may be claimed by a taxpayer in a taxable year shall not
exceed 50 percent of the total state income tax liability of
the taxpayer. Any tax credit claimed under this section, but
not used in any taxable year, may be carried forward for five
consecutive years from the close of the tax year in which the
credits were earned.
(3) A contribution for which a credit is claimed under
this section may not be used as a deduction by the taxpayer
for state income tax purposes.
(4) No tax credit provided by this section may be
transferred to another taxpayer.
(d) Taxpayers taking a credit authorized by this
section shall provide the name of the eligible charitable
organization and the amount of the contribution to the
department on forms provided by the department.
(e)(1) An eligible charitable organization shall
provide the department with a written certification that it
meets all criteria to be considered an eligible charitable
organization. The organization shall also notify the
department within 60 days of any changes that may affect
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department within 60 days of any changes that may affect
eligibility under this section.
(2) The eligible charitable organization's written
certification must be signed by an officer of the organization
under penalty of perjury. The written certification shall
include all of the following:
a. Verification of the organization's status under
Section 501(c)(3) of the Internal Revenue Code;
b. A statement that the organization does not provide,
pay for, refer for, promote, or provide coverage of drug
induced or surgical abortions and does not financially or
otherwise support, partner with, or affiliate with any other
entity that provides, pays for, refers for, promotes, or
provides coverage of abortions, including nonsurgical
abortions and abortifacients; and
c. A statement that the organization maintains its
principal office or presence in this state and that at least
50 percent of its clients claim to be residents of this state.
(f) The department shall review each written
certification and determine whether the organization meets all
the criteria to be considered an eligible charitable
organization and notify the organization of its determination.
The department may also periodically request recertification
from the organization. The department shall compile and make
available to the public a list of eligible charitable
organizations.
(g) Tax credits authorized by this section that are
earned by a partnership, limited liability company, S
corporation, or other similar pass-through entity, shall be
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corporation, or other similar pass-through entity, shall be
allocated among all partners, members, or shareholders,
respectively, either in proportion to their ownership interest
in such entity or as the partners, members, or shareholders
mutually agree as provided in an executed document.
(h) A taxpayer shall apply for credits with the
department on forms prescribed by the department. In the
application the taxpayer shall certify to the department the
dollar amount of the contributions made or to be made during
the calendar year. Within 30 days after the receipt of an
application, the department shall allocate credits based on
the dollar amount of contributions as certified in the
application. However, if the department cannot allocate the
full amount of credits certified in the application due to the
limit on the aggregate amount of credits that may be awarded
under this section in a calendar year, the department shall so
notify the applicant within 30 days with the amount of
credits, if any, that may be allocated to the applicant in the
calendar year. Once the department has allocated credits to a
taxpayer, if the contribution for which a credit is allocated
has not been made as of the date of the allocation, then the
contribution must be made not later than 90 days from the date
of the allocation. If the contribution is not made within such
time period, the allocation shall be canceled and returned to
the department for reallocation. Upon final documentation of
the contributions, if the actual dollar amount of the
contributions is lower than the amount estimated, the
department shall adjust the tax credit allowed under this
section.
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section.
(i) The aggregate amount of tax credits that may be
allocated by the department under this section during a
calendar year shall not exceed ten million dollars
($10,000,000). No more than 50 percent of the total amount of
credits provided for by this section may be allocated for
contributions to a single eligible charitable organization
during a calendar year.
(j) The department may enact rules as necessary to
implement and administer the provisions of this section.
(k) The tax credits allowed under this section shall be
effective January 1, 2026, for the 2026 taxable year and shall
continue through the 2030 tax year, unless extended by act of
the Legislature.
Section 2. This act shall become effective on October
1, 2024.
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