To Create A Tax Credit For Contributions To A Pregnancy Resource Center.
Summary
HB1404 creates a new Arkansas income tax credit for donations made to a “pregnancy help organization,” effective for tax years beginning on or after January 1, 2025. The credit equals 50% of the taxpayer’s qualifying contributions during the tax year, and it may be used only up to the amount of income tax otherwise due. Contributions may include cash, stock, bonds, other marketable securities, or real property.
The bill defines a pregnancy help organization as an entity that existed as of January 1, 2023, provides services to people facing unintended pregnancies with the goal of encouraging childbirth, and does not perform, prescribe, encourage, or refer for abortions, nor affiliate with organizations that do. The definition expressly includes maternity homes, adoption agencies, and social services agencies that provide material support and related assistance to pregnant individuals.
Impact
The bill would amend Arkansas Code Title 26, Chapter 51 by adding a new income tax credit provision for charitable contributions to qualifying pregnancy help organizations. It would reduce state income tax liability for eligible donors, potentially lowering state revenue to the extent taxpayers claim the credit. The Department of Finance and Administration is authorized to adopt rules to administer the credit, and the credit is limited so it cannot exceed the taxpayer’s income tax due in a given year.
Sentiment
The available context suggests the bill is framed positively by its sponsors as support for pregnancy resource centers and related organizations, but there is no committee transcript or recorded vote history to show broader legislative debate. Based on the bill’s structure and caption, the measure appears to have been introduced in a supportive policy context focused on encouraging donations to anti-abortion pregnancy support services. Because no votes or hearing remarks are provided, there is no documented public sentiment in the record beyond the bill’s pro-support framing.
Contention
The main point of contention is likely the bill’s exclusion of organizations that perform or refer for abortions, which makes the credit available only to pregnancy help organizations aligned with childbirth encouragement and not abortion services. That definition may raise concerns about whether the state is using the tax code to favor one set of reproductive-health providers over others. Another possible issue is the fiscal impact of reducing income tax revenue, though no formal objections or amendments are shown in the provided materials.