Alabama 2025 Regular Session

Alabama Senate Bill SB290 Compare Versions

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

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1	1	SB290INTRODUCED
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3	3	SB290
4	4	JWV2YYN-1
5	5	By Senator Allen
6	6	RFD: Finance and Taxation Education
7	7	First Read: 03-Apr-25
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12	12	5 JWV2YYN-1 05/22/2024 TEW (F) TEW 2024-1896
13	13	Page 1
14	14	First Read: 03-Apr-25
15	15	SYNOPSIS:
16	16	This bill would provide a state income tax
17	17	credit to individuals and businesses that make
18	18	voluntary cash contributions to an eligible pregnancy
19	19	center or residential maternity facility.
20	20	A BILL
21	21	TO BE ENTITLED
22	22	AN ACT
23	23	Relating to income tax; to enact the Pregnancy Resource
24	24	Act; Relating to income tax; to provide a state income tax
25	25	credit to individuals and businesses that make contributions
26	26	to eligible charitable organizations that operate as a
27	27	pregnancy center or residential maternity facility; and to
28	28	specify the obligations of the Department of Revenue in
29	29	implementing the act.
30	30	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
31	31	Section 1. (a) This section shall be known and may be
32	32	cited as the "Pregnancy Resource Act."
33	33	(b) For the purposes of this section, the following
34	34	words and phrases have the meanings ascribed in this section
35	35	unless the context clearly indicates otherwise:
36	36	(1) "Department" means the Department of Revenue.
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66	66	(1) "Department" means the Department of Revenue.
67	67	(2) "Eligible charitable organization" means an
68	68	organization that is all of the following:
69	69	a. Exempt from federal income taxation under Section
70	70	501(c)(3) of the Internal Revenue Code;
71	71	b. An Alabama nonprofit formed under Title 10A, Chapter
72	72	3, Code of Alabama 1975; and
73	73	c. A pregnancy center or residential maternity facility
74	74	that:
75	75	1. Regularly answers a dedicated phone number for
76	76	clients; and
77	77	2. Maintains in this state its primary physical office,
78	78	clinic, or residential home, which is open for clients for a
79	79	minimum of 20 hours a week, excluding state holidays; and
80	80	3. Offers services, at no cost to the client, for the
81	81	express purpose of providing assistance to women in order to
82	82	carry their pregnancy to term, encourage parenting or
83	83	adoption, prevent abortion, and promote healthy childbirth;
84	84	and
85	85	4. Utilizes trained and licensed medical professionals
86	86	to perform any available medical procedures.
87	87	(c)(1) The tax credit authorized in this section shall
88	88	be available to:
89	89	a. A taxpayer who is an individual taxpayer, except
90	90	that a husband and wife who file separate returns for a
91	91	taxable year in which they could have filed a joint return may
92	92	each claim only one-half of the tax credit that would have
93	93	been allowed for a joint return.
94	94	b. A taxpayer who is a business enterprise engaged in
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124	124	b. A taxpayer who is a business enterprise engaged in
125	125	commercial, industrial, or professional activities and
126	126	operating as a corporation, limited liability company,
127	127	partnership, or sole proprietorship.
128	128	(2) Except as otherwise provided in this section, a
129	129	credit is allowed against the state income tax imposed by
130	130	Section 40-18-2, Code of Alabama 1975, for voluntary cash
131	131	contributions made by a taxpayer during the taxable year to an
132	132	eligible charitable organization. The amount of credit that
133	133	may be claimed by a taxpayer in a taxable year shall not
134	134	exceed 50 percent of the total state income tax liability of
135	135	the taxpayer. Any tax credit claimed under this section, but
136	136	not used in any taxable year, may be carried forward for five
137	137	consecutive years from the close of the tax year in which the
138	138	credits were earned.
139	139	(3) A contribution for which a credit is claimed under
140	140	this section may not be used as a deduction by the taxpayer
141	141	for state income tax purposes.
142	142	(4) No tax credit provided by this section may be
143	143	transferred to another taxpayer.
144	144	(d) Taxpayers taking a credit authorized by this
145	145	section shall provide the name of the eligible charitable
146	146	organization and the amount of the contribution to the
147	147	department on forms provided by the department.
148	148	(e)(1) An eligible charitable organization shall
149	149	provide the department with a written certification that it
150	150	meets all criteria to be considered an eligible charitable
151	151	organization. The organization shall also notify the
152	152	department within 60 days of any changes that may affect
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182	182	department within 60 days of any changes that may affect
183	183	eligibility under this section.
184	184	(2) The eligible charitable organization's written
185	185	certification must be signed by an officer of the organization
186	186	under penalty of perjury. The written certification shall
187	187	include all of the following:
188	188	a. Verification of the organization's status under
189	189	Section 501(c)(3) of the Internal Revenue Code;
190	190	b. A statement that the organization does not provide,
191	191	pay for, refer for, promote, or provide coverage of drug
192	192	induced or surgical abortions and does not financially or
193	193	otherwise support, partner with, or affiliate with any other
194	194	entity that provides, pays for, refers for, promotes, or
195	195	provides coverage of abortions, including nonsurgical
196	196	abortions and abortifacients; and
197	197	c. A statement that the organization maintains its
198	198	principal office or presence in this state and that at least
199	199	50 percent of its clients claim to be residents of this state.
200	200	(f) The department shall review each written
201	201	certification and determine whether the organization meets all
202	202	the criteria to be considered an eligible charitable
203	203	organization and notify the organization of its determination.
204	204	The department may also periodically request recertification
205	205	from the organization. The department shall compile and make
206	206	available to the public a list of eligible charitable
207	207	organizations.
208	208	(g) Tax credits authorized by this section that are
209	209	earned by a partnership, limited liability company, S
210	210	corporation, or other similar pass-through entity, shall be
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240	240	corporation, or other similar pass-through entity, shall be
241	241	allocated among all partners, members, or shareholders,
242	242	respectively, either in proportion to their ownership interest
243	243	in such entity or as the partners, members, or shareholders
244	244	mutually agree as provided in an executed document.
245	245	(h) A taxpayer shall apply for credits with the
246	246	department on forms prescribed by the department. In the
247	247	application the taxpayer shall certify to the department the
248	248	dollar amount of the contributions made or to be made during
249	249	the calendar year. Within 30 days after the receipt of an
250	250	application, the department shall allocate credits based on
251	251	the dollar amount of contributions as certified in the
252	252	application. However, if the department cannot allocate the
253	253	full amount of credits certified in the application due to the
254	254	limit on the aggregate amount of credits that may be awarded
255	255	under this section in a calendar year, the department shall so
256	256	notify the applicant within 30 days with the amount of
257	257	credits, if any, that may be allocated to the applicant in the
258	258	calendar year. Once the department has allocated credits to a
259	259	taxpayer, if the contribution for which a credit is allocated
260	260	has not been made as of the date of the allocation, then the
261	261	contribution must be made not later than 90 days from the date
262	262	of the allocation. If the contribution is not made within such
263	263	time period, the allocation shall be canceled and returned to
264	264	the department for reallocation. Upon final documentation of
265	265	the contributions, if the actual dollar amount of the
266	266	contributions is lower than the amount estimated, the
267	267	department shall adjust the tax credit allowed under this
268	268	section.
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298	298	section.
299	299	(i) The aggregate amount of tax credits that may be
300	300	allocated by the department under this section during a
301	301	calendar year shall not exceed ten million dollars
302	302	($10,000,000). No more than 50 percent of the total amount of
303	303	credits provided for by this section may be allocated for
304	304	contributions to a single eligible charitable organization
305	305	during a calendar year.
306	306	(j) The department may enact rules as necessary to
307	307	implement and administer the provisions of this section.
308	308	(k) The tax credits allowed under this section shall be
309	309	effective January 1, 2026, for the 2026 taxable year and shall
310	310	continue through the 2030 tax year, unless extended by act of
311	311	the Legislature.
312	312	Section 2. This act shall become effective on October
313	313	1, 2024.
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