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AL SB326
Bill
Status
5/16/2023
Primary Sponsor
April Weaver
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AI Summary
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Creates the Rural Hospital Investment Program to incentivize donations to eligible rural hospitals through state income tax credits for donors.
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Establishes a Rural Hospital Investment Program Board within the Office of State Treasurer composed of the Governor, State Treasurer, Commissioner of Revenue, legislative leaders, and two Alabama Hospital Association representatives to determine hospital eligibility and oversee program operations.
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Eligible hospitals must be general acute care or critical access hospitals in federally-designated rural areas that serve Medicaid, Medicare, and indigent patients, and must submit five-year financial plans updated every five years.
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Provides tax credits equal to 100% of donations with annual limits of $15,000 for individuals, $30,000 for joint filers, $450,000 for pass-through entities, and $500,000 for C-corporations; unused credits can be carried forward up to three years.
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Sets statewide annual aggregate credit caps of $38 million (fiscal year 2024), $60 million (fiscal year 2025), and $80 million (fiscal year 2026 and thereafter), with no single hospital receiving more than $2 million annually; becomes effective January 1, 2024.
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
Introduced and Referred to Senate Finance and Taxation General Fund
5/16/2023