HB310 Summary

• Establishes the Rural Hospital Investment Program Board within the Office of the State Treasurer to oversee donations to eligible rural hospitals and administer a state income tax credit program.

• Creates a 100 percent state income tax credit for donations to eligible rural hospitals, with annual contribution limits of $15,000 for individuals, $30,000 for married couples filing jointly, $450,000 for pass-through entities, and $500,000 for C corporations.

• Restricts eligible hospitals to rural general acute care, critical access, or rural emergency hospitals licensed by Alabama that serve Medicaid and Medicare patients without discrimination and provide care to indigent patients.

• Caps statewide annual tax credits at $38 million (fiscal year 2025), $60 million (fiscal year 2026), and $80 million (fiscal year 2027 and thereafter), with a per-hospital limit of $2 million per tax year.

• Authorizes use of qualified donations for operational expenses, maintenance, capital upgrades, and facility improvements, with eligible hospitals required to submit five-year financial plans and annual donation reports.