HB208 Summary

• Establishes the Pregnancy Resource Act, creating a state income tax credit for individuals and businesses making voluntary cash contributions to eligible pregnancy centers or residential maternity facilities.

• Eligible organizations must be 501(c)(3) nonprofits operating in Alabama with at least 20 hours weekly client access, offering free services to help women carry pregnancies to term, and not providing or supporting abortions in any form.

• Tax credit amount cannot exceed 50 percent of a taxpayer's total state income tax liability, with unused credits carried forward for five consecutive years; credits cannot be deducted as charitable contributions or transferred to other taxpayers.

• Department of Revenue allocates credits on a first-come basis up to an annual cap of $10 million, with no single organization receiving more than 50 percent of annual credits; contributions must be made within 90 days of credit allocation or the allocation is cancelled.

• Tax credits are effective January 1, 2024, through the 2028 tax year unless extended by the Legislature; the act becomes effective the first day of the third month following passage and gubernatorial approval.