Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1299 3
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By: Representatives C. Cooper, Bentley, S. Berry, John Carr, Crawford, Duffield, Evans, Haak, 5
Lundstrum, J. Mayberry, McCollum, Pilkington, Ray, Rose, Rye, Wooten 6
By: Senator J. Dotson 7
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For An Act To Be Entitled 9
AN ACT TO CREATE A T AX CREDIT FOR CONTRI BUTIONS TO A 10
PREGNANCY RESOURCE CENTER; AND FOR OTHE R PURPOSES. 11
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Subtitle 14
TO CREATE A TAX CREDIT FOR CONTRIBUTIONS 15
TO A PREGNANCY RESOURCE CENTER. 16
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
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SECTION 1. Arkansas Code Title 26, Chapter 51, is amended to add an 21
additional subchapter to read as follows: 22
Subchapter 29 — Contributions to Pregnancy Resource Centers 23
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26-51-2901. Definitions. 25
As used in this subchapter: 26
(1) "Contribution" means a donation of cash, stock, bonds, or 27
other marketable securities o r real property; 28
(2) "Pregnancy resource center" means a nonresidential facility 29
located in this state that: 30
(A) Is established and operated primarily to provide 31
assistance to women with crisis pregnancies or unplanned pregnancies by 32
offering pregnancy testing and emotional and material support to encourage 33
and assist such women in carrying their pregnancies to term; 34
(B) Is not a facility where childbirths are performed; 35
(C) Does not perform, induce, or provide referrals for 36 HB1299
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abortions and does not hold itself out as performing, inducing, or providing 1
referrals for abortions; 2
(D) Provides direct client services at the facility, as 3
opposed to providing counseling or referral services by telephone or video 4
conference; 5
(E) Provides service s at no cost to its clients; and 6
(F) Is exempt from income taxation under the Internal 7
Revenue Code of 1986, as it existed on January 1, 2023; 8
(3) "State tax liability" means tax liability under one (1) or 9
more of the following: 10
(A) This chapter; 11
(B) The insurance premium tax under §§ 26 -57-603 — 26-57-12
605; or 13
(C) The annual franchise tax under the Arkansas Corporate 14
Franchise Tax Act of 1979, § 26 -54-101 et seq.; and 15
(4) "Taxpayer" means an individual, fiduciary, partnership, 16
limited liability company, firm, partner in a firm, insurance company, 17
corporation, or a shareholder in a Subchapter S corporation subject to state 18
tax liability. 19
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26-51-2902. Tax credit. 21
(a) There is allowed a tax credit against a taxpayer's state tax 22
liability in the amount determined under subsection (b) of this section for 23
contributions made by a taxpayer to a pregnancy resource center. 24
(b)(1) Except as otherwise provided in this subchapter, the amount of 25
the tax credit allowed under this section i s equal to fifty percent (50%) of 26
the total amount of contributions the taxpayer made to a pregnancy resource 27
center during the tax year. 28
(2) A taxpayer is not eligible to claim a tax credit under this 29
section if the taxpayer's total amount of contributions to a pregnancy 30
resource center is less than fifty dollars ($50.00) for the tax year. 31
(3) The maximum tax credit a taxpayer may claim under this 32
section in a tax year is fifty thousand dollars ($50,000). 33
(c) The amount of the tax credit u nder this section that may be 34
claimed by the taxpayer in a tax year shall not exceed the amount of state 35
tax liability of the taxpayer for the tax year. 36 HB1299
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(d) Any unused tax credit under this section may be carried forward 1
for four (4) consecutive tax year s following the tax year in which the tax 2
credit was earned. 3
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26-51-2903. Duties of Secretary of the Department of Human Services. 5
The Secretary of the Department of Human Services shall: 6
(1)(A) Determine which facilities in this state are pregnancy 7
resource centers. 8
(B) The secretary may require a facility seeking to be 9
classified as a pregnancy resource center for purposes of this subchapter to 10
annually certify information reasonably necessary for the secretary to make 11
the determination require d under this subsection; 12
(2) Classify a facility as a pregnancy resource center if the 13
facility meets the definition stated in § 26 -51-2901; 14
(3) Revoke a facility's classification as a pregnancy resource 15
center if the facility submits a false certifi cation under this subchapter, 16
fails to timely submit a certification under this subchapter, or otherwise 17
ceases to meet the definition of "pregnancy resource center" under § 26 -51-18
2901; and 19
(4) Establish a procedure by which a taxpayer is able to 20
determine if a facility has been classified as a pregnancy resource center 21
for purposes of this subchapter. 22
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26-51-2904. Pregnancy resource centers. 24
A pregnancy resource center: 25
(1)(A) Shall certify information to the Secretary of the 26
Department of Financ e and Administration concerning the: 27
(i) Identity of each taxpayer who made a 28
contribution to the pregnancy resource center and who intends to claim a tax 29
credit under this section; and 30
(ii) Amount of each contribution made to the 31
pregnancy resource center. 32
(B) A person who certifies information under this section 33
that is false or fraudulent is subject to the penalty stated in § 26 -18-203; 34
and 35
(2) May decline a contribution from a taxpayer. 36 HB1299
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1
26-51-2905. Limitations on tax credit. 2
(a)(1) The total amount of tax credits claimed under this subchapter 3
shall not exceed two million five hundred thousand dollars ($2,500,000) in a 4
fiscal year. 5
(2) Tax credits under this subchapter shall be issued in the 6
order in which contributions are rec eived. 7
(b)(1)(A) The Secretary of the Department of Finance and 8
Administration shall establish a procedure by which, for each quarter of the 9
fiscal year, the cumulative amount of tax credits available under this 10
section is equally apportioned among all f acilities that have been classified 11
as pregnancy resource centers under § 26 -51-2903. 12
(B) To the extent possible, the procedure established 13
under this subsection shall ensure that taxpayers are able to claim the full 14
cumulative amount of tax credits av ailable for the fiscal year under this 15
section. 16
(2) If a pregnancy resource center fails to use all of its 17
apportioned tax credits under this section during the first quarter of the 18
fiscal year, the secretary shall reapportion the unused tax credits to the 19
pregnancy resource centers that have used all or a percentage, as determined 20
by the secretary, of their apportioned tax credits under this section for 21
that quarter of the fiscal year. 22
(3) The secretary shall reapportion tax credits under this 23
section for each quarter of the fiscal year. 24
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26-51-2906. Rules. 26
The Secretary of the Department of Human Services shall promulgate 27
rules to implement this subchapter. 28
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SECTION 2. DO NOT CODIFY. TEMPORARY LANGUAGE. Classification of 30
pregnancy resource centers. 31
The Secretary of the Department of Human Services shall begin 32
classifying facilities as pregnancy resource centers under this act by 33
September 1, 2023. 34
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SECTION 3. EFFECTIVE DATE. Section 1 of this act is effective for tax 36 HB1299
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