AL HB555

Creates a $5,000 annual state income tax credit for single parents who carried a pregnancy to term, available for each of the first five years of the child's life during tax years 2026-2030.

Defines eligible single parents as unmarried individuals not cohabiting with a partner who have legal and physical custody of a child.

Allows refunds to taxpayers whose income tax liability is less than the credit amount, with credits non-transferable and non-saleable.

Caps total credits statewide at $5,000,000 per tax year and requires applicants to submit medical documentation, state law documentation, and other verifiable evidence to the Department of Revenue.

Imposes a $500 fine for fraudulent claims and requires the Department of Revenue to create an application portal and public awareness campaign while reporting fiscal impact to the Legislature before each regular session.