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
Summary
HB284, the Pregnancy Resource Act, creates a state income tax credit for individuals and businesses that make voluntary cash contributions to qualifying pregnancy resource organizations. The bill is aimed at supporting entities that assist women in carrying pregnancies to term, encourage parenting or adoption, prevent abortion, and promote healthy childbirth. It applies to contributions made to eligible charitable organizations that are 501(c)(3) nonprofits in Alabama and operate as pregnancy centers, state-licensed mobile medical clinics serving women, or residential maternity facilities meeting specified service and location requirements.
The credit is available to both individual and business taxpayers and is capped at 50 percent of a taxpayer’s state income tax liability, with unused credits allowed to carry forward for five years. Contributions used for the credit cannot also be deducted for state income tax purposes, and credits cannot be transferred. The Department of Revenue would be responsible for certifying eligible organizations, maintaining a public list, allocating credits, and issuing annual reports on the credit’s economic impact. The bill sets a statewide annual cap of $10 million in credits and limits any single organization to no more than 50 percent of the annual total.
Impact
HB284 would amend Alabama income tax law by creating a new, temporary tax credit program effective for tax years 2026 through 2030. It would add administrative duties for the Department of Revenue, including reviewing organizational certifications, managing taxpayer applications, allocating credits on a first-come or limited-availability basis, and monitoring compliance. The bill would directly affect taxpayers who donate to qualifying pregnancy centers and maternity facilities, as well as the nonprofit organizations that seek certification to receive eligible contributions.
Sentiment
The bill’s stated purpose and structure indicate strong support among its sponsors for pregnancy resource and anti-abortion service providers. The bill was introduced with a substantial list of House sponsors and referred to Ways and Means Education, suggesting interest in advancing it as a tax policy measure. No committee transcript or recorded vote information is available here, so the broader legislative sentiment cannot be measured from debate or roll call data, but the bill text itself reflects a clearly favorable posture toward the organizations it seeks to support.
Contention
The main points of contention are likely to center on the bill’s abortion-related eligibility restrictions and the use of state tax credits to subsidize organizations that oppose abortion or do not affiliate with abortion providers. The certification requirements explicitly exclude organizations that provide, refer for, promote, or financially support abortions or related coverage, which may be controversial for critics who view the measure as ideologically targeted. There may also be fiscal concerns about the $10 million annual cap, the administrative burden on the Department of Revenue, and whether the credit diverts revenue to private charitable giving rather than direct state programs.