HB 356 — Income tax, tax credit for voluntary cash contributions to pregnancy center or residential maternity facility

HB356 INTRODUCEDENGROSSED HB356 P24QGGG-1UFP5GXG-2 By Representatives Kiel, Stadthagen, Woods, Mooney, Gidley, Standridge, Kirkland, Brown, Yarbrough, Colvin, Paschal, Stubbs, Underwood, Rigsby, Pettus, Wilcox, Lamb, Faulkner, Stringer RFD:

21-Mar-24 Page 0 P24QGGG-1HB356 01/03/2024Engrossed TEW2 (F)4 TEW6 2024-12A 2BILL 4TO SYNOPSIS:BE ENTITLED AN ACT Relating to income tax;

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 provide a state income tax credit to individuals and businesses that make contributions to eligible charitable organizations that operate as a pregnancy centercenter, state-licensed mobile medical clinic serving women, or residential maternity facility;

(2) "Eligible charitable organization" means an Page 1 HB356 INTRODUCED organization that is all of the following:

An Alabama nonprofit formed under Title 10A, Chapter Page 1 HB356 Engrossed 3, Code of Alabama 1975.

A pregnancy centercenter, state-licensed mobile medical clinic serving women, or residential maternity facility that does all of the following:

Maintains in this state its primary physical office, clinic, mobile facility, or residential home, which is open for clients for a minimum of 20 hours a week, excluding state holidays.

A taxpayer who is a business enterprise engaged in commercial, industrial, or professional activities and Page 2 HB356 INTRODUCED operating as a corporation, limited liability company, partnership, or sole proprietorship.

Page 2 HB356 Engrossed (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.

Page 3 HB356 INTRODUCED (2) The eligible charitable organization's written certification must be signed by an officer of the organization Page 3 HB356 Engrossed under penalty of perjury.

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 95 entity that provides, pays for, refers for, promotes or provides coverage of abortions, including nonsurgical 95 abortions and abortifacients.

(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 allocated among all partners, members, or shareholders, Page 4 HB356 INTRODUCED respectively, either in proportion to their ownership interest in such entity or as the partners, members, or shareholders Page 4 HB356 Engrossed mutually agree as provided in an executed document.

(i) The aggregate amount of tax credits that may be Page 5 HB356 INTRODUCED allocated by the department under this section during a calendar year shall not exceed ten million dollars Page 5 HB356 Engrossed ($10,000,000).

Page 6 HB356 Engrossed House of Representatives Read for the first time and referred ................21-Mar-24 to the House of Representatives committee on Ways and Means Education Read for the second time and placed ................25-Apr-24 on the calendar:

amendment Read for the third time and passed ................30-Apr-24 as amended Yeas 75 Nays 28 Abstains 0 John Treadwell Clerk Page 7