Income tax; to reinstate the income tax refund check-off for Victims of Crime and Leniency, Incorporated (VOCAL), and to repeal entities whose check-offs have been rescinded
Summary
HB438 revises Alabama’s income tax refund check-off statute, Section 40-18-140, which allows resident taxpayers to direct all or part of a state income tax refund to designated charitable or public-purpose funds. The bill’s main substantive change is to reinstate the check-off for Victims of Crime and Leniency, Incorporated (VOCAL), specifically for VOCAL’s Victims of Violence Assistance Fund, beginning with the 2026 tax year. It also updates the statute’s language, consolidates the check-off provisions into one section, and removes references to check-offs that have been rescinded.
The bill also repeals Sections 40-18-154 through 40-18-157 of the Code of Alabama 1975, which relate to certain other income tax contribution designations, thereby streamlining the code and centralizing the remaining check-off programs in Section 40-18-140. The measure preserves the existing framework under which the Department of Revenue administers these designations and may remove a check-off if it fails to meet the statutory contribution threshold over time.
Impact
HB438 would amend Alabama tax law governing income tax refund check-offs by restoring VOCAL as an eligible recipient and by reorganizing the statutory list of check-off programs. It affects resident individual income taxpayers who choose to make refund contributions, the Department of Revenue, and the nonprofit or public entities that receive designated funds. The bill also codifies a sunset-style review mechanism for low-performing check-offs and repeals separate code sections that are no longer needed because their check-offs have been rescinded or consolidated.
Sentiment
The available voting history suggests strong support for the bill in the House of Origin, with unanimous or near-unanimous passage on recorded votes and no opposing votes reported. No committee transcript is available, but the bill’s progress indicates broad agreement with reinstating the VOCAL check-off and cleaning up the tax code. Overall, the sentiment appears favorable and largely noncontroversial.
Contention
There is little evidence of substantive opposition in the available record. The only potentially sensitive issue is the reinstatement of the VOCAL check-off, which directs taxpayer-designated refunds to a victims’ assistance organization; however, the unanimous votes suggest that this did not generate meaningful controversy. The other point of discussion is administrative and structural rather than ideological: consolidating multiple check-off provisions into one section and repealing obsolete sections to simplify the code.
Alabama Justice Information Commission; collection, dissemination, and use of biometric identifiers by certain entities provided for; Alabama Background Check Service established, types, uses, and fees for certain background checks for noncriminal justice purposes authorized; Alabama Rap Back Program established, penalties provided for; existing law relating to release of criminal history information repealed
Income Taxes; to make technical changes to the funding provisions of the CHOOSE Act credits and increase funding, and to extend the sunset date for deductions for ABLE contributions.