HB86 Summary

• Creates the Rural Hospital Investment Program with a board chaired by the Governor to oversee funding for rural general acute care, critical access, and rural emergency hospitals in Alabama.

• Authorizes state income, excise, insurance premium, and utility tax credits up to $15,000-$30,000 for individuals and up to $500,000 for corporations for qualified donations to eligible rural hospitals.

• Establishes statewide annual aggregate tax credit limits of $20 million (2026), $25 million (2027), and $30 million (2028 onwards), with per-hospital caps of $750,000 (2026), $1 million (2027), and $1.25 million (2028 onwards).

• Requires eligible rural hospitals to be licensed, located in federal rural areas, serve Medicare/Medicaid and indigent patients, and submit five-year financial viability plans; hospitals must receive at least 10% local government support to participate.

• Tax credits are available beginning January 1, 2026, with unused credits transferable for up to three years, and administration by the Alabama Department of Revenue through rules adopted by January 1, 2026.