Pregnancy Resource Act; create.
The impact of HB 1685 is notably on state tax law by permitting taxpayers to claim significant tax credits for contributions to specific charitable organizations aimed at promoting pregnancy-related assistance. However, taxpayers are restricted from using these contributions as deductions for state income tax purposes, thus ensuring that the credits serve as direct incentives rather than components of general tax write-offs. This delineation may encourage more philanthropic contributions specifically directed at pregnancy resources by clarifying the tax benefits involved.
House Bill 1685, also known as the Pregnancy Resource Act, establishes a framework for providing tax incentives to taxpayers who make voluntary cash contributions to designated charitable organizations. This bill authorizes an income tax credit, an insurance premium tax credit, and an ad valorem tax credit based on the contributions made. To qualify for these tax credits, contributions must go to organizations deemed eligible, primarily those that support pregnancy resource centers and crisis pregnancy centers that comply with specific regulatory standards. The maximum limit for the tax credits allocated for this program is capped at $10 million for 2021 and set to increase in subsequent years, with the framework designed to promote voluntary giving among business taxpayers.
The general sentiment regarding HB 1685 appears to be largely supportive among proponents who view it as a means to enhance community resources dedicated to pregnancy support. Supporters suggest that these tax incentives can bolster funding for organizations that provide necessary services to expecting mothers. Conversely, there may be apprehensions among critics about the exclusivity of eligible organizations—potentially limiting the diversity of support within the helping sector. Hence, the bill elicits divided opinions about its implications for broader charitable endeavors versus targeted assistance.
Notable points of contention regarding HB 1685 center around the definition of 'eligible charitable organizations' and the criteria these organizations must meet to qualify for tax credits. Opponents may argue that this specificity could lead to selective support that bypasses other essential charitable causes. Additionally, the bill's strict criteria and limitations around how contributions are certified before a tax credit can be claimed might pose barriers for some potential donors looking to support a wide array of social initiatives.