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AL HB475

Bill

Status

Introduced

5/16/2023

Primary Sponsor

Terri Collins

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Origin

House of Representatives

Regular Session 2023

AI Summary

HB475 Summary

  • Establishes the Rural Hospital Investment Program Board within the Office of State Treasurer to oversee a program providing financial support to eligible rural hospitals in Alabama.

  • Creates a state income tax credit for individuals and entities donating to eligible rural hospitals, with contribution limits of $15,000 for single filers, $30,000 for joint filers, $450,000 for pass-through entities, and $500,000 for C corporations.

  • Sets statewide annual aggregate tax credit caps of $38 million (fiscal year 2024), $60 million (fiscal year 2025), and $80 million (fiscal year 2026 and thereafter), with a $2 million annual limit per hospital.

  • Requires eligible hospitals to be licensed general acute care or critical access hospitals in rural areas, serve Medicaid and Medicare patients without discrimination, provide services to indigent patients, and submit five-year financial viability plans.

  • Allows donated funds to be used for operational expenses, facility maintenance, capital upgrades, and improvements; permits hospitals to retain fundraising managers for up to 5 percent of donations received.

Legislative Description

Relating to rural hospitals; to provide for funding of rural hospitals by creating the Rural Hospital Investment Program; to establish a governing board to administer the program, to provide for a state income tax credit in exchange for donations to rural hospitals; and to provide for coordination with the Department of Revenue.

Establishing a tax credit for financial support of rural hospitals

Last Action

Indefinitely Postpone

5/31/2023

Committee Referrals

Ways and Means Education5/16/2023

Full Bill Text

No bill text available